Just recently, last April 18, 2017, United Overseas Bank (UOB) released a big announcement regarding their new tie up with KrisFlyer.
This new tie up between the two companies produced the establishment of a new savings account that provides a benefit to account holders by giving these customers air miles when they save or spend.
Starting April 19, 2017, the Krisflyer UOB account has been made available for acquisition to the public. Customers who have at least S$350,000 and above in their account balance, will be rewarded with 5.4 Krisflyer miles after spending a dollar with the use of the Krisflyer UOB debit card. For those who have S$100,000 – S$350,000 in their account balance, a reward of 3.4 Krisflyer miles will be given for every dollar spent.While in the case of their customers who have even less, which is S$3,000 – S$100,000, in their account balance will rewarded with 1.4 Krisflyer miles for every dollar spent.Krisflyer and UOB clarified that their customers would have to spend at least S$500 dollars per calendar month in order to be rewarded with Krisflyer miles on their spending.
For customers who are able to sustain the minimum average balance of S$20,000 in their account and as well as able to spend S$1,000 every month for 12 months would then be rewarded with 16,800 KrisFlyer miles. And this total number of Krisflyer miles is equivalent for redemption of a flight to Bali, Langkawi, and Lombok, aboard with either Singapore Airlines or SilkAir. UOB stated that in 2016 alone, 22% of spending made by their customers with the use of UOB credit and cards came from expenditures on travel, and a total of 37% were on flights. 60% of the expenditures on tickets were mostly with flights with Singapore Airlines. The usage of debit cards for travel has increase to 15%.And for the past 2 years, UBO’s spending on debit cards have risen to 40%.
While for credit cards, the common reward given to customers are air miles, Krisflyer being the most popular among them. There are also other benefits and rewards for their customers with other companie, Scoot and TigerAir.
This is how it works, example: For customers who purchase tickets on either Scoot or TigerAir while using their Krisflyer UOB debit card on the designated website or through the mobile banking app of UOB, which is UOB Mighty, the reward would be that these customers are given an additional 5kg on their baggage allowance if they will buy at least 20kg for their baggage allowance. Krisflyer and UOB emphasized that the establishment of the new Krisflyer UOB account becomes a way for those people who choose to pay out on debit cards or who are just starting out in their careers and are still not capable and eligible to avail of credit card in order to receive Krisflyer miles. The goal of the bank is that for the following years, they must be able to put up at least 200,000 Krisflyer UOB accounts.