Savings giant NSB woos more deposits with ‘Cash is King’ message
Monday, 26 August 2013 00:00
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Innovates with ‘Salli Salli’ time-bound promotion with Rs. 19.8 m in cash prizes on offer
The phrase ‘Cash is King’ is common in business but savings giant NSB is taking that message to thrifty households as part of its latest push to woo more deposits.
Breaking away from traditional or popular mode of rewarding depositors with goods which one may not actually need, NSB is actually going to pay cash to those who save.
The State-backed giant, which commands a savings market share of over 15%, last week launched its latest promotion titled ‘NSB Salli Salli’ under which customers who deposit Rs. 10,000 between now and 31 December and keep that money until end-February 2014, stand to win Rs. 5 million via a draw.
If the deposit is Rs. 5,000, a cash prize of Rs. 3 million and Rs. 2 million for a Rs. 2,500 deposit is up for grabs. There are more consolation prizes and the promotion’s combined cash value is a staggering Rs. 19.8 million. The bank aims to reward 918 qualifying lucky customers. Those who deposit before 30 September 2013 will enjoy a bonus chance. According to the total balance of the relevant account, a customer has greater number of winning chances.
Since its inception four decades ago, all deposits with NSB have been guaranteed by the State and NSB also offers higher interest rate on savings than any other bank. Additionally, it is the only bank in the country with Triple A credit rating whilst its international rating is on par with that of the Government. Despite these unique advantages, NSB’s latest ‘cash for savings’ move reflects the degree of intensive competition within the banking industry to woo deposits.
Senior NSB officials admitted that competition has grown aggressively, hence, NSB innovating to retain its customers, a staggering 17.4 million – which means 8 out of 10 Sri Lankans hold an account at NSB, as well as woo more deposits.
“In the past, NSB had a successful promotion called Ridee Rekha. Given the aggressive competition and our need to retain and reward our saving customers, we decided to innovate, do something different,” Chairperson W.A. Nalani told journalists at the launch of ‘NSB Salli Salli’.
NSB’s General Manager and CEO H.M. Hennayake Bandara said the aim of the latest promotion was to inculcate thrift and the savings habit among all Sri Lankans. “NSB plays the role of a catalyst in enhancing national savings and the latest scheme will help the initiative,” he added.
As of March 2013, NSB’s deposit base was a massive Rs. 456.5 billion, up by 11.5% from a year earlier and 60% of its fund base is invested in Government securities. This, the officials emphasised reflects NSB’s contribution to socio-economic development.
“So when saving with NSB, both the customer and the country benefits,” said Nalani, who took office recently having retired from Bank of Ceylon after a distinguished career ending as the General Manager.
Via its multimedia advertising campaign, NSB is driving home the point that cash is king as with actual cash rewards customers can buy what they want instead of being forced to accept what schemes by other banks offer such as luxury vehicles, houses, three-wheelers and laptops.
Nalani said the latest promotion, first of its kind in the industry, will be conducted as a pilot for six months and depending on the success it will be extended or enhanced. It will be extensively promoted via NSB’s 228 branches and 4,500 service centres including post offices and sub post offices.
Among consolation prizes are Rs. 100,000 each for five winners in the category of Rs. 10,000 savers, Rs. 50,000 each for five in the Rs. 5,000 category and Rs. 25,000 each for five in the Rs. 2,500 category. Third prizes are Rs. 10,000 each for 500, 300 and 100 people in each of the three categories.
