Asda Money to capitalise on customers' distrust of banks

Supermarket giant to launch cashback credit card and insurance deals

LAST UPDATED AT 16:22 ON Mon 9 Jul 2012

ASDA has rebranded its financial division in a move made to cash in on the deteriorating public confidence in the high street banks. The Daily Telegraph reports that the newly created Asda Money will offer a cashback credit card among other financial products.

The Asda Money Credit Card will offer one per cent unlimited cashback on Asda shopping and fuel purchases, and 0.5 per cent unlimited cashback on all shopping outside Asda. Unlike other cashback cards, the Asda Money Card has unlimited cashback that is redeemed monthly. There will be no annual fee.

Other new financial products such as currency exchange and insurance are all part of the supermarket's aggressive new direction. However, at this stage Asda has no plans to offer current accounts.

Kirsty Ward, head of Asda Money, said: "We're combining our retail and financial services expertise to provide quality products at prices that save people money every day."

Customers will be able to manage their accounts either online, through UK call centres or via post.

The shift is the latest from supermarkets keen to win business from the 'big four' banks, as thousands of distrustful customers switch their accounts. In the wake of this trend Marks and Spencer has announced the creation of 50 in-store bank branches, while Tesco is in the final stages of rolling out mortgage services.

Asda will hope to persuade its 18 million customers to make the switch by promoting the services at checkouts and through their website. 

Ward said: "Times are tough and we want to do more for the millions of people who shop at Asda every day. Financial products are important, but they shouldn't cost the earth and you shouldn't need to be an expert to buy one." · 

For further concise, balanced comment and analysis on the week's news, try The Week magazine. Subscribe today and get 6 issues completely free.