Bank of New Zealand Targets Under-30s Market
27 April 2004
Bank of New Zealand Targets Under-30s Market With New Transaction Account
Bank of New Zealand says it plans to make further inroads into the under-30s market with a new transaction account that it is introducing next month. ‘Smart Money’ has been designed especially to take into account the lifestyle and financial circumstances of New Zealand 20-somethings who are in the work force.
Bank of New Zealand general manager of business development and strategy, Andrew Whitechurch, says Bank of New Zealand has designed ‘Smart Money’ carefully, taking into account the lifestyle and circumstances of working 20-somethings.
“We know people in their 20s want two things from a bank account: value for money, and easy access to their money to support their lifestyle.
“’Smart Money’ provides both of those things to 20-somethings. It’s easily the best deal in the market if you are working and under 30 and you want to run your bank account to suit your lifestyle, not the other way round,” says Mr Whitechurch.
‘Smart Money’ offers under 30 year olds:
- no monthly base fee
- no charges for the combined 30 most-expensive electronic transactions each month (service fees still apply; electronic transactions include BNZ ATM, BNZ Internet, telephone banking, EFTPOS, bill payments, automatic payments, and direct debits)
- no charge for deposits
- no charge for the first two staff-assisted withdrawals each month
- 24-hour banking card
Mr Whitechurch says ‘Smart Money’ is the only account in the market that has been designed specifically for under 30s.
“There are accounts designed for tertiary students – including Bank of New Zealand’s Campus Pack – but the majority of people aged between 20 and 30 are in the workforce. We’re responding to working 20-somethings with ‘Smart Money’.
“Under 30s are particularly price sensitive. Some of them have student loans, some are trying to save a deposit for their first home, others are saving to travel, but all of them want to have a life while they are achieving these goals. They want an account that gives them easy access to their money and that minimises fees so that they can spend their hard-earned cash while enjoying life.”
Mr Whitechurch said that over the next few months Bank of New Zealand would take the battle for the 20-something market to the doorstep of its major competitors.
“We have the right product for the market and we know that we are the type of bank that people want to bank with when they graduate from university, start work, or set-up their first home.
“Bank of New Zealand has the best proposition in the market for those people.”
‘Smart Money’ officially goes into the market in May, although it is already available in Bank of New Zealand branches. An all-new print and television advertising campaign will back Smart Money.
Mr Whitechurch says Bank of New Zealand has carefully researched the 20 something market. “People are more likely to switch banks in their 20s than they are at any other time in their lives, simply because many of the life-changing events that occur in peoples’ lives – like starting work, graduating, or moving in with a partner – happen before people turn 30.
“Those are the sort of events that prompt people to reassess their finances and to look for a bank that has a competitive offering and that meets their changing needs.
“Bank of New Zealand has the right deal for those people. We are a full-service bank that provides everything our customers need, from transaction accounts through to unit trusts.
“Once you turn 30 – and your financial and banking needs start changing – we’re still the right bank for you. Our range of services and products is intended to meet the financial needs of our customers right through to retirement.”
Mr Whitechurch said all existing Bank of New Zealand customers who are under 30 years of age could open ‘Smart Money’ accounts. “We are already promoting ‘Smart Money’ to our existing under 30 customers and it is proving very popular. They are switching in droves. We’re confident that the rest of the under 30s market will love ‘Smart Money’ too.”