TSB seeks to woo “generation paperless” with online retail banking services
UK bank TSB is emphasising its shift to customer-friendly online services as it seeks to redefine itself in the wake of its split from Lloyds Banking Group last year.
As part of a drive to become more electronic, the bank is encouraging customers to register for paperless statements and correspondence, as well as internet banking – and rewarding them with 5% AER/4.89% gross variable credit interest on balances up to £2,000. TSB also offers internet banking customers access to a personal inbox online, where they can access and view their bank correspondence any time they choose.
The bank cites a survey that found that three quarters of UK customers say their day-to-day use of paper for things like letters, postcards, reading and research is becoming redundant. According to the bank’s research, 42% of UK customers still receive paper utility bills and bank . Three-fifths (58%) of people currently receive e-statements from their bank instead. These have the advantage of being more instantaneous, in some cases available on mobile or tablet (15%) and more environmentally friendly.
More than three quarters of people (78%) said they have folders of old bills and bank statements at home, but generational differences are emerging. While 84% of those aged 55 and over have folders of bills and bank statements, only 65% of 18 to 24 year olds do. Among those that do keep paper records, 20% say they never look at them and 11% say their folders are all out of date and they would find anything they need online. Customers aged 25 to 44 were the biggest users of e-statements (63%) against 57% of 45 to 54 year olds and 55% of 18 to 24 year olds.
“As technology and the need for instant access to information has become more common-place in people’s busy lives, we are seeing the emergence of a paperless generation,” said Andy Piggott, head of current accounts at TSB. “Our TSB Classic Plus account has been designed to reflect this shift. We ask people to register for paperless statements and correspondence, and in exchange we offer them a bank account that is both rewarding and accessible, without all the funny stuff.”
The bank has 4.5 million customers in the UK, and has defined its mission as supporting “safe and sustainable” economic growth in the surrounding communities, serving “only individuals and local business customers”.
Last month, it was reported that TSB is currently attracting one in 10 new current account customers in the UK. Earlier this year, TSB expanded and modernised its ATM network by rolling out 80 new NCR SelfServ ATMs across the UK, increasing its network to 830 machines.The new SelfServ ATMs let customers do the traditional tasks of checking their balance and withdrawing their cash, as well as other services such as manage their PIN, pay bills, order postal statements and make mobile phone top-ups.