Asda benefits as customers flee the banks

Kirsty Ward, head of the newly rebranded Asda Money, said there is “growing mistrust of bankers” and increasing demand among customers for new players in the sector.

The Leeds supermarket giant is launching a new campaign this week to promote its credit card, travel money and insurance products to its 18 million weekly shoppers.

Ms Ward said the 10-year-old financial services business has served “well over one million” customers in the last year. “It’s all about growing now,” she told the Yorkshire Post.

She said Asda is “a great challenger brand” in financial services and the sector gives the group “an opportunity to do more as a retailer for the customers”.

The marketing campaign is promoting Asda Money across the group’s 545 stores and 12,000 check-outs. Asda has also launched a new website to help customers manage their money better and bring together all of its products.

The retailer unveiled its first cash-back credit card last month offering shoppers one per cent on spending in store, online and at petrol stations and half a per cent on card transactions everywhere else.

Ms Ward said shoppers have become disenfranchised with supermarket loyalty schemes and want “straightforward value” in tough economic times.

“What we bring to financial services is the ability to translate what customers are looking for into good-value products,” she added. Ms Ward said there has been “some really good initial take-up” for the card, which has a 14.9 per cent APR.

Asda joined forces with LaSer to deliver the card, creating 108 new jobs in Solihull. LaSer is jointly owned by French bank BNP Paribas and European retail group Galeries Lafayette. Unlike some other retailers, Asda is not beholden to one financial services partner; it has shopped around and has 14 in total.

Asda has joined forces with Travelex to launch the multi-channel Travel Money business, which now has a presence in 72 stores. The retailer is planning to have the bureaux in more than 100 stores.

Customers can buy online and have the money delivered at home or at work; alternatively they can pick it up in store.

Ms Ward said the Travel Money business is “going phenomenally well” and last week saw a 10 per cent increase in ‘click and collect’.

She said: “Multi-channel formats within financial services is going to be pretty critical and a key competitive edge for the retailers going forward.”

Ms Ward said some customers are using the online service to manage their weekly budget but instead of ordering for home delivery, they are printing off lists and shopping in-store.

“We are taking that insight of how customers are looking to shop differently and applying that to customer service. That’s insight that the banks don’t have,” she said.

Asda has also seen strong growth in its Christmas savings card. Ms Ward said: “We have seen a resurgence in customers coming back to a product which was previously in decline.

“Following the collapse of the Farepak savings firm, customers are looking for safer places to bank their Christmas savings.

“We are attracting customers through that route.”

Asked if Asda is considering offering current accounts, Ms Ward said: “It’s not something we are planning to do today.”

But she added: “If we find a way to deliver more value to customers with current accounts and mortgages that may be an area we go in the future.”

Ms Ward predicted that there will be more competition in the financial services industry.

She said: “We will take our time to get it right. What we don’t want to do is jump into this and replicate” what the banks are doing.

A head for figures

NEW Zealand-raised Kirsty Ward is a graduate of Huddersfield University.

She worked at Sara Lee and Martins International before joining Boots, where she ran the advantage card scheme.

In 2004, Ms Ward joined Marks & Spencer as marketing manager and later became head of products at M&S Money.

She joined Asda in 2009 and now heads Asda Money.

The financial services sector is seen as a growth area for the big four supermarket groups.

Tesco is developing its own banking infrastructure, while Sainsbury’s is partnered with Lloyds.