Supermarket banks on service for shoppers

Milk, eggs, mortgage, current account lodgement, butter - the weekly shopping list is dramatically changed as personal banking enters the supermarket. A joint venture between Superquinn and TSB Bank, Tusa banking services, was launched this week at Superquinn in Lucan.

The venture is bucking against the traditional belief that customers want large branch-based banking services. Tusa is based on a US supermarket/personal banking model which has proven hugely successful with busy shoppers. Tusa targets customers comfortable with electronic banking but says staff will be available for more complicated transactions or queries.

For 59 hours a week, personal banking services are available including: loans, mortgages, savings and current accounts.

The service operates during nearly the same hours as the supermarket, opening one hour after and closing one hour before Superquinn. By the end of next year, all 17 existing Superquinn branches and any new stores will have a Tusa banking section.

Superquinn customers may lodge money to their Tusa current account as they pay for groceries.

Other transactions can be conducted in the 400 sq ft Tusa area located near the checkouts and exits. The banking area is divided into four zones: an information zone with touchscreen technology, a service zone, a communications zone and a private banking area.

Tusa is offering competitive prices on mortgages and credit-card rates.

It claims to offer the lowest variable mortgage rate at 3.80 APR.

"We will always be extremely competitive and will not differentiate between new and old business," says chief executive, Mr Brian Mahoney. Some banks are offering lower rates but only in the first year of the mortgage.

The service also provides a visa card at 17.5 APR, the lowest rate in the market. Tusa will advise customers to pay credit-card bills by direct debit to reduce costs and avail of the lower overdraft rate. Charges for some transactions are also lower than in the banks.

Tusa has a six-function banking card which operates as an ATM, Laser, cheque guarantee card, SuperClub card, telephone banking registration card and Eircom charge card.

Customer willingness to use ATMs and touchscreen technology for the majority of transactions rather than face to face banking will be tested in the coming year.