J Sainsbury set to ramp up banking arm by luring customers in with points

J Sainsbury, Britain&rsquo;s third biggest supermarket, is ramping up its banking arm, by launching a new scheme that will see shoppers rewarded for buying its financial services products.<br /><br />Sainsbury&rsquo;s Finance will allow customers to earn double Nectar points for taking out home insurance, or opening an account, but it will also give Sainsbury&rsquo;s account holders one per cent off grocery shopping.<br /><br />Sainsbury&rsquo;s revamped banking products is an explicit effort to rival Tesco&rsquo;s recent re-launch of its Clubcard and its rebranding of Tesco Personal Finance to Tesco Bank.<br /><br />Both supermarkets hope to capitalise on the decline in consumer trust in the financial sector during the downturn. But their banking divisions also are set to boost shopper numbers.<br /><br />Research out yesterday reveals that 59 per cent of people believe they would be willing to spend more in their supermarket if they had&nbsp; a financial services product that adequately rewarded them on their shopping.<br /><br />Chief executive of Sainsbury&rsquo;s Finance Neil Chandler said: &ldquo;We know that only 13 per cent of people are satisfied with the level of loyalty reward they currently receive from their finance provider, and 35 per cent claim they don&rsquo;t receive any at all.&rdquo;<br />&nbsp;<br />Sainsbury&rsquo;s Finance currently has around 1.5m active customers.