There is a place for old people here: how banks compete for "age-related" customers

The market for pension cards, a key tool for millions of Russians to receive payments from the state, continues to develop. The recent appearance of the pension card of DOM Bank.The Russian Federation, declared as a product that takes into account the needs of older customers, gave reason to compare conditions in this segment of banking products. Experts discuss the diversity of Russian banks' approaches to attracting pensioners in the Izvestia article.

"Plastic" for seniors

The main difference between a pension bank card and a debit card is that banks issue it only for pensioners who have a certificate from the SFR and who receive payments from the state on the card — all types of pensions and benefits. You can receive not only a pension on a pension card, but also a salary if the pensioner continues to work. Holders of these cards have no restrictions on the types of funds transfer. All pension cards are legally issued free of charge.

— Banks also do not charge fees for servicing pension "plastic" — unlike most other types of cards. The state has banned earning from pensioners, and credit organizations are complying with the ban," emphasizes the director of content and analytics at the financial marketplace "Choose.<url>" Irina Andrievskaya. — A pensioner can have one card, information about which will be in the Social Fund, for crediting monthly payments. Her service is always free, but on condition that she receives a pension.

The expert also refers to the differences between pension cards and welcome bonuses or "live" money — from 1 thousand rubles to 3 thousand rubles, which banks offer to older clients for transferring pensions to them. As a rule, these are promotions for a certain period. According to analysts, such a bonus generosity is not practiced in banks for ordinary customers. As for tariffs or services, pension cards are no different from regular debit cards.

According to Alexey Lossan, an expert at Compare, pension cards give access to more favorable conditions — discounts in pharmacies, increased cashback for housing and communal services and the purchase of medicines.

"Pension cards often automatically become part of social programs: you can withdraw money from them for free at any ATM, pay for discounted travel, and get access to benefits," Lossan notes.

A new player

A new product of DOM Bank.The Russian Federation is positioned with an emphasis on the needs of older customers and additional bonuses. The card provides a 0.3 percentage point deposit bonus, as well as a one-time customer fee of 2,000 rubles for making a pension transfer before September 30.

The card provides a permanent increased cashback of 5% on purchases at pharmacies. The bank will also refund 5% of expenses in the categories established in this quarter as categories with increased cashback in accordance with the loyalty program. So, until June 30, these are "Clothes and shoes", "Transport" and "Pets". The Bank sets new categories of increased remuneration on a quarterly basis, taking into account the seasonal preferences of customers. The card is serviced for free, including free SMS notification.

— We strive to make banking services accessible and convenient for all customers. The pension card is our contribution to improving the financial comfort of senior citizens. At the moment, it is available to customers in Moscow, the Moscow region, the Nizhny Novgorod Region and the Krasnoyarsk Territory. By the end of the year, we plan to expand the geography of the product: it will be possible to issue a card in any region of Russia," notes the Deputy Chairman of the Board of DOM Bank.Russian Federation Alexey Kosyakov.

The battle for the pensioner

The pension card market is a fiercely competitive field where banks play various cards in an effort to attract older customers. Who are the key players in this market and what do they offer?

Experts agree that the main players in this market are large banks such as Sberbank, VTB, Alfa-Bank and others. DOM.RF Bank has now joined the competition with its new product.

— Banks are trying to attract retired customers due to convenience and clarity. For example, Sber relies on trust and familiarity — many pensioners already have a Sber card, and they do not want to change it. Postbank — for accessibility: branches near the house and card processing directly at the post office. VTB focuses on additional bonuses and cashback. Banks are also investing in customer education: they provide free digital literacy courses and help connect mobile banking," says Alexey Lossan.

According to Irina Andrievskaya, banks are actively competing with each other for retired customers.

— First of all, they are lured away with bonuses (most often in the form of "live" money) for transferring pensions to a card. They also use other methods: increased deposit rates, cashback on groceries and pharmacies," the expert notes.

Sberbank, relying on the power of the brand, relies on reliability and basic benefits: free service, cheaper SMS notification (only 40 rubles / month) and a modest but stable benefit from savings — 3.5% per annum on the minimum balance.

Uralsib is trying to attract a large one-time bonus - 3,000 rubles are waiting for those who transfer a pension to a bank card. However, the pension must be at least 5,000 rubles per month.

T-Bank chooses a strategy of modest but guaranteed gifts. The pensioner here is promised an unconditional bonus of 1,000 rubles (less than Uralsib's) for free card maintenance.

Alfa-Bank lures you with an increased repayment rate — 5% cashback for housing and communal services. But this attractive percentage is valid only for the first three months and only when paying through a proprietary application or Alfa-Online, which creates significant restrictions.

Loyalty and consistency

Analyst of the financial marketplace "Banks.Erania Bochkina believes that the loyalty of retired customers to a particular bank depends on age, financial literacy and awareness of the banking services market.

— Young pensioners who actively use non-cash payments, compare different offers from banks, feel confident in interacting with them, and can change their bank more often. Moreover, for example, transferring a pension from one credit institution to another is not very difficult and has no restrictions on the number of iterations," the expert notes.

At the same time, according to her, older pensioners often have difficulty understanding the specifics of banking products, their design, and choosing a bank. In this case, they are more likely to constantly use the services of a certain bank, which was chosen by the children, or whose card was already issued for other purposes.

Alexey Lossan, an expert at the Compare company, notes that banks are now actively developing special offers specifically for pensioners.

— These are simple mobile applications with large fonts, and telephone consultations on working with the map. There is a personalized cashback — a refund not just for purchases, but for those categories that are most often interesting to the elderly: medicines, medical services, taxis, grocery delivery. Some banks provide an opportunity to arrange a "social package" — with additional insurance, legal support, or even a carer's call.

According to the forecast of the director of content and analytics of the financial marketplace, "I will choose.<url>" by Irina Andrievskaya in the coming years, the pension card market will grow, as more and more people who are accustomed to using debit cards to receive salaries and payments will retire.

— The market expansion was also influenced by the departure from "pension slavery". Previously, a pension could only be received on a Sberbank or VTB card, but now pensioners can choose almost any bank. They are still limited by the list of banks with which the SFR has an agreement, but the FAS and the Central Bank plan to remove these barriers," the expert emphasizes.

Thus, it can be assumed that competition in this market will only intensify, and banks will continue to build their strategies for interacting with older customers. And the effectiveness of these strategies will be shown by time and the choice of the clients themselves.