The retail sector’s drive to win business from Britain’s battered banks continued today with the launch of a new personal finance brand.
The creation of Asda Money comes as Marks & Spencer looks to open 50 bank branches over the next two years and Tesco moves towards offering mortgages.
Asda has offered personal finance products for a decade but is now providing an unlimited cash back credit card as part of today’s brand launch.
It will target the 18 million people who shop at Asda’s 542 stores every week by promoting the brand at check-outs and through a new website.
Kirsty Ward, head of Asda Money, said the credit card will appeal to shoppers frustrated with "gimmicky" points-based reward cards offered by other retailers.
She added: "Times have changed and shoppers don’t want complicated points schemes or rewards that don’t translate into real every day savings."
The card will offer 1% unlimited cashback on Asda shopping and fuel purchases, as well as 0.5% cashback on shopping outside of Asda.
Rivals Tesco and Sainsbury’s stepped into the personal finance sector more than a decade ago and have targeted more of the market as confidence in mainstream banks slips in the wake of the financial crisis.
And Marks & Spencer is to offer current accounts from this autumn as part of a joint venture with HSBC.