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Rewarding a smart savings mindset

16 July 2018 Jean Minnaar, Old Mutual
Jean Minnaar, general manager of product solutions at Old Mutual.

Jean Minnaar, general manager of product solutions at Old Mutual.

Old Mutual leads in July’s Savings Month with new rewards programme to encourage responsible financial behaviours.

Whether it’s smoking, over-eating or spending money on the wrong things, bad habits are hard to break. However, one of the toughest to break is managing money poorly, including borrowing too much, saving too little or protecting yourself against shocks.

To help South Africans get into the habit of making smart money decisions, and in support of National Savings Month, Old Mutual has announced the launch of their customer loyalty programme, Old Mutual Rewards.

“Rewarding good financial behaviour is key to improving our nation’s savings culture and helping every South African - not only Old Mutual customers – to take charge of their own financial future,” says Jean Minnaar, general manager of product solutions at Old Mutual.

“We believe that by encouraging certain behaviours, we will shift mindsets from consumerism to responsible planning and wealth creation. Among the behaviours we particularly hope to encourage are effective day-to-day money management, financial knowledge-seeking to support sound financial decision-making, gaining insight into your own financial needs, financial planning and goal setting. But most importantly, following through on financial decisions.

“We did not want to restrict our programme to Old Mutual customers only. As part of our commitment as a Responsible Business – and underpinned by our firm belief that what’s good for South Africa is good for Old Mutual – our rewards programme is open to all South Africans aged 18 and up.”

The need to develop responsible financial habits is highlighted by the fact that of the 25 million-plus credit-active consumers in South Africa, more than 9 million have impaired credit records.

Minnaar says that as with any bad habit, being aware of the negative effects is not always enough to break a pattern that has become deeply wired in our brains by constant repetition.

“What makes Old Mutual Rewards unique is that our programme has been specifically designed to change habits and ensure personal financial wellbeing through simple, accessible and effective financial education – and rewards.”

Consumers can earn Old Mutual Rewards points for building financial knowledge and making sensible financial decisions. Point earning activities include completing financial assessments, using online calculators like the education savings or debt repayment calculators, and completing education modules on Moneyversity, Old Mutual’s online financial education hub.

“Participants are essentially rewarded for taking steps to improve their financial know-how and making the associated behavioural changes. The rewards offered are simple and tangible.

Old Mutual Rewards members can:

• Re-invest or donate their points
• Convert points to products like the Old Mutual Money Account
• Redeem points at any Old Mutual Rewards partner*, or
• Use points to buy airtime and data bundles.

“We do understand the need for small motivational rewards to encourage a shift in behaviour,” Minnaar says, “which is why Old Mutual Rewards gives members the option to either redeem their rewards points or convert them back into their financial plan. It’s all about making great financial decisions today, and feeling good about it.”

The ultimate aim of the programme, according to Minnaar, is to enable people to be more discerning and understand the tangible benefits of having a positive mindset towards money and how it can be used to create a better future.

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