Russian financial institutions regularly develop new products, technologies and proposals. Now a new approach has been proposed in the implementation of cashback for the purchase of consumer goods by customers, the so-called FMCG. In this system, which is scheduled to be launched in the near future, payments are made directly by producers. Details below.
What's the new approach?
Unlike traditional cashback payment schemes, there is another possibility here - payments are made by manufacturers of goods. Moreover, banks in this situation receive additional income - this is a commission from the manufacturer for each cashback application. For manufacturers, the new approach is also beneficial, as it provides a new digital channel for targeted interaction with consumers. Well, buyers get the opportunity to save money and get comfortable in an industry such as digital banking.
The organizers of the project assume all obligations to interact with the manufacturers of the goods in question. Thus, the responsibilities of the organizers include such moments as calculating the fund for paying cashback to bank customers, preparing creatives and communication campaigns, transferring commission to the bank as a percentage of the turnover of purchased promotional goods.
Project authors
The cashback system in question was developed by Rosselkhozbank and CASHOFF, a resident of the Skolkovo Foundation.
Dmitry Gorkov, founder and CEO of CASHOFF: “We have negotiated with FMCG producers and farmers, compiled a catalog of 150+ stocks. CASHOFF experience shows that the effect of the introduction of this technology for the bank includes an increase in transaction activity by 14%, yield on card products by 33%, an increase in ARPU by 5% and LTV by 25%. I am sure that the launch of cashback promotions at the expense of manufacturers on the site of one of the largest Russian banks will provide a significant synergistic effect for all market participants.”
Rosselkhozbank offers users a reward for purchasing consumer goods, and manufacturers - the opportunity to promote their products among the bank's customers. 150 types of promotional FMCG and farm products will appear in the RSHB application, for the purchase of which in any retail stores you can get cashback.
The user makes a purchase from the list of promotional products in any store, offline or online. Then he uploads the check to the application using a QR code or manually. The accrued ruble cashback can be transferred to a bank card. To facilitate the customer journey, purchase receipts will be downloaded automatically in the future.
In turn, the Bank continues to support local producers within the framework of the national credit and financial system of the agro-industrial complex with the assistance of the Ministry of Agriculture. One form of support is the accrual of bonuses for the purchase of farm products.
Andrey Kuptsov, Director of the Department of Payment Technologies and Remote Channels, RSHB: “Rosselkhozbank has created the world's first digital ecosystem for people associated with agriculture. It contains almost all goods, services of the agricultural sector that allow farmers to automate agricultural processes, save time and resources, and ultimately take their business to a new level. Our ecosystem makes it easy for micro, small and medium-sized businesses not only to produce, but also to retail farm products to end consumers. The new cashback project will help popularize farm products and make them even more accessible.”
At the beginning of 2020, the Skolkovo Foundation and Rosselkhozbank launched the RSHB Accelerator competition project to find promising startups for the financial and agro-industrial sectors. The winner - the CASHOFF company offered a cashback service through a banking application.
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