The Co-operative is overhauling the loyalty scheme for all its group activities – including Co-op food, travel and banking operations – in a move that is designed to simplify the programme.
The Co-op Bank claims two-thirds of its members will earn more points thanks to the revamp.
From January, a set number of points will now be earned through banking and insurance products, replacing the previous system of allocating points dependent upon account balances.
The value of points will change each year depending upon the Co-op’s financial performance, but will pay out dividends twice a year. The first payments under the redesigned scheme will take place in November 2013.
Card-holders will now earn points on current accounts and insurance policies, as well as food and holiday purchases.
For instance, if the value of a point next year is decided at 1p, a customer with a current account will be awarded 1,200 points, which will be worth £12. The sum will be paid by the Co-op to the customer in November or June the following year.
The move comes amid plans to reranded more than 600 Lloyds TSB and Cheltenham & Gloucester branches as TSB by the middle of 2013. The branches will then come under the ownership of The Co-op Bank in November when the £750m deal to buy the 632 branches is completed.
It is not yet known if the Co-op will keep the TSB brand or rebrand them to match its existing network. A spokeswoman for the Co-op recently claimed that “there are no final decisions on branding”.
