Scotia reclassifies bank clientele under new 'deposit suite'
Published:Sunday | January 29, 2012 | 12:00 AM
Sabrina Gordon, Business Reporter
Scotiabank Jamaica has restructured and expanded it deposit services to create a new 'suite' of 12 products, each tailored to different types of customers.
But one of the new accounts will require minimum savings of J$100,000, while the structure also creates 'premium' savers whose minimum balance will be J$500,000.
At the same time Scotiabank has launched a review of its new Visa debit card following complaints from merchants and consumers.
The new 'deposit suite' replaces seven general savings accounts offered by the bank. Existing customers are not affected by the changes, the bank said.
"Previously, we found that the products were just generic - you save in it, transact in it and this gives the ability to use up all of one's saving - so we wanted to make it a little bit more structured for the customer," said Tamiko Saddler, director of product delivery.
"We wanted to reach out that helping hand and help people save towards those goals that we know they have," she said.
No more 'old style' accounts
The bank stopped selling its "old style" accounts in December, such as the regular savings and chequing accounts, Scotiaexpress, Scotiachoice and Scotiagain, said Saddler.
"What we have found is that 80 per cent of the 'old suite' accounts customers were transacting in the accounts and only 20 per cent were true savers, so that helped us to design the new type of products," Saddler said.
Persons with the old accounts will be unaffected by the changes, but will have the option of transitioning to the new style accounts.
New customers, however, will only be sold the newly developed suite of products launched last month.
More than 10,000 new accounts were opened under the new 'deposit suite' in the first month of its introduction between December 16 and January 16, Saddler said.
The new structure lumps the accounts into four main categories:
- Everyday bank accounts: Allows clients to have a full-service account giving the flexibility to the bank using any channel, ATM, telephone, mobile, online and point of sale;
- Savings accounts: Allows the client to manage money and save towards a specific goal at a designated rate of interest, and are divided into primary and premium accounts. Within this category the monthly fee charged to maintain the account will be waived if the required minimum daily closing balance is upheld.
- Everyday banking plans: A primary savings banking plan requires a minimum daily closing balance of J$5,000, and J$500,000 for the premium savings plan; and
- Speciality accounts: Caters for different age categories - a senior account for persons 60 years and older, a junior account for the zero to 17, and a Scotiabank Be Money plan for 18- to 25-year-olds.
"Ideally, every customer should have one of each, a transaction and savings account suited to their individual life and style of banking," Saddler pointed out.
"We want those two distinct behaviours very clear in the customer's mind," she said.
Prior to its new suite of deposit accounts, Scotiabank launched its Visa debit card in September 2011. Since then, though, with complaints by several merchants, the company said it is currently reviewing the way the card works.
The card has cut transaction fees on local point-of-sale purchases, when used as a credit card, and allows for online purchases. There is a lag, however, between the transaction and the debiting of accounts. And some merchants are unable to treat purchases as a debit transaction.
"We are very interested in customer feedback, so we will be reviewing the way the product works and addressing concerns," said Saddler.
She otherwise declined to comment on the specifics of the complaints and how Scotiabank is addressing them.