Banks 'are starting to offer rewards on transaction accounts'

Competition in the Australian banking sector is intense and companies are offering more incentives to attract new customers.

According to Bankwest retail chief executive Vittoria Shortt, the firm is now linking rewards programmes to standard transaction accounts – something that has become common in other countries but has not yet been seen down under.

She told National Features that customers are rewarded for both spending and saving, although people need to make a minimum deposit of $2,000 into their bank accounts each month.

"There are a lot of customers who like rewards points and they've never been available on transaction accounts. We saw there was a gap," Ms Shortt was quoted as saying.

Banks constantly have to evolve in order to retain their customers and Westpac chiefs revealed last week the demand for mobile banking services is soaring.

It is safe to predict lenders that fail to offer the latest banking technology – as well as rewards schemes – will quickly fall behind their rivals.

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