Westpac today announced the launch of a new zero rate âFlexâ credit card later this year to give customers more flexibility and control in managing their money.
The digital card will allow customers to access $ 1,000 credit with no interest on purchases, no late fees and no currency exchange fees1. Customers will be billed a flat monthly fee of $ 10, but this fee will not be charged if they pay the amount owed for the previous month on time.
Customers will be able to apply for the card through mobile or online banking and if their application is approved, a digital card will be issued and ready to use within minutes through their banking app or mobile wallet.
Expenses, reimbursements, and card reminders will be handled through online banking, and the Card Verification Code (CVC) will automatically change every 24 hours for added security.
âWe are offering customers a new payment method that is simple, flexible and fast, as well as a fully digital experience from start to finish,â said Chris de Bruin, Managing Director of Westpac Consumer and Business Banking.
âFlex was designed to meet the changing needs of younger clients who want more control over their finances and are more likely to use their smartphones to manage their money. It’s easy to use and understand, and customers will be able to use Flex to make purchases in-store or online just like a regular card.
âThe Flex claim process will use a real-time digital data assessment to examine a customer’s financial situation to ensure they can meet their refunds. By using this technology, we have the ability to quickly assess a client’s financial situation while taking steps to ensure that we are lending responsibly, âsaid Mr. de Bruin.
Westpac consumer studies show that young Australians are less likely to use a traditional credit card than older generations.
The data also highlights that Gen Z and Millennials perform almost all of their banking tasks online and are more likely to seek out banking tools and features to manage their cash flow and repayments.
âFlex is for the ‘on-demand’ generation who want convenience and control, without the complexity,â said de Bruin.
âCustomers will be able to choose their repayment cycle, whether it’s twice a month or monthly, and we’ll send proactive reminders through the app and SMS to help them track repayments.
âWe know security is key, so we’ve integrated our dynamic CVC feature, which issues a new digital code every 24 hours to help protect customers from fraud and scams while shopping online,â said M. de Bruin.
Westpac research shows:
Three-quarters (75%) of Australians believe that the continued growth of digital and online banking has made them more aware of their spending habits because they can see their money more easily.
Almost nine in 10 Australians (87%) agree that it is easier to perform daily banking tasks through digital channels.
Gen Z are more likely to use mobile for banking tasks than any other generation (Gen Z 85%, Millennials 77%, Gen X 58%, Baby Boomers 20%).
57% of Australians say regular reminders will help them better manage refunds. This is due to three quarters of Generation Z (75%; cf. Millennials 68%, Generation X 56%, Baby Boomers 37%).
Almost half (47%) of Australians wish there were more banking products available that could help them better manage their cash flow.
More than a third (37%) of Australians think traditional credit cards aren’t as relevant anymore. This rises to around half of the younger generations (Gen Z 53%, Millennials 48%; cf. Gen X 32%, Baby Boomers 21%).
The Flex card is currently in trial and will be available to customers later this year. It can be used anywhere Mastercard is accepted, in-store or online2 and is available to customers through their digital wallet.