UOB and KrisFlyer create hybrid account to lure Millennials

United Overseas Bank Limited (UOB) and KrisFlyer have partnered to launch the KrisFlyer UOB Account, which rewards customers with KrisFlyer miles for every dollar they spend or save. It looks to tap on the travel-loving Millennial segment, comprising of those in the early stages of their careers, who may not be eligible for a credit card to accumulate KrisFlyer miles. This is along with customers who prefer spending on a debit card.

Customers can use the KrisFlyer miles for flights and upgrades on Singapore Airlines and SilkAir, or for travel vouchers on Scoot and Tigerair. They will also be able to enjoy complimentary privileges when they travel with the latter two airlines.

According to Jacquelyn Tan, UOB head of personal financial services Singapore, spend on UOB debit cards have grown 40% over the past two years, this includes a 15% rise in travel spend on debit cards.

“By working in partnership with KrisFlyer, we have brought together two home-grown brands to create an innovative banking solution that earns miles when you save and spend to meet the needs of frequent flyers and millennials,” UOB’s Tan said.

From UOB’s credit card base, Tan explained that air miles are also one of the bank’ most frequent reward redemption categories. KrisFlyer miles in particular are very popular, accounting for more than half of all UNI$ rewards redemptions made last year, she said.

“The partnership is also part of our commitment to constantly enhance the benefits of our KrisFlyer programme, providing members more ways to earn miles for their travels,” Tan Kai Ping, Singapore Airlines senior vice president marketing planning, said.