08/09/2014 Banking Innovation


Advertising efforts instead of interest payments

Innovation presentation

0% Car Loan is the first no fee, interest-free consumer loan available on the European market. During the two years that Bawag PSK ran the campaign, it improved its market share from 6.5% to more than 8.7%.

0% Car Loan was run as a temporary promotion in conjunction with the consumer loan product KreditBox Schnell, which allows customers to take out a loan in less than ten minutes.

Inspired by Google, which offers free products to its customers, Bawag PSK created the loan so that instead of paying interest or fees, customers simply agreed to carry Bawag PSK’s branding on their car during the loan period. This equates to approximately €8,000 in advertising value per year per car.

To appeal to consumers in Austria – many of whom are environmentally conscious – Bawag PSK only made the loan available for cars that produce no more than 136g/km in CO2 emissions.

TV advertising around the campaign ended up having twice as much impact as adverts from financial competitors. A number of newspapers also wrote about the 0% Car Loan. The result was that Bawag PSK earned €12 for every €1 it spent on advertising.

- Total consumer loan sales volumes increased by 55% in 2013

- In the same year, Bawag PSK’s market share in new business increased from less than 9% to an average of 13%

- Bawag PSK enhanced its portfolio volume in a shrinking market

- After two campaigns, 1,200 cars had Bawag PSK branding on them.

Uniqueness of the project

• Instead of charging interest, Bawag PSK gets customers to carry branding on their cars

• A community of car owners have been established that proactively recommend Bawag PSK’s loan service

• Consumers can take out a loan in just ten minutes

• Bawag PSK only made the loan available for cars that produce no more than 136g/km in CO2 emissions.

Want to keep reading?

Become a Qorus member to get access to all our innovations

Interested in learning more? Speak to Boris, Qorus's Content Lead

Qorus has a library of almost 8,000 innovation case studies across critical areas like customer experience, sustainability, marketing & distribution and more that can be used to inform your decision-making.
Contact us

Related innovations

19/04/2024 Insurance Innovation

New Ireland Assurance Customer & Broker Portal

The challenge we set for ourselves was ambitious and required a complete reimagining of the customer experience. Traditionally financial advisors,...

19/04/2024 Insurance Innovation

AIA One--Reimagining the sales agent experience at AIA Thailand

At AIA, we are leveraging Technology, Digital and Analytics (TDA) across our business as we transform into a customer-centric, digital...

18/04/2024 Insurance Innovation

MigdalCONNECT: Empowering Handheld End-to-End Insurance Distribution & Monitoring

“MigdalCONNECT“ is an award-winning, hand-held, and people-focused, mobile insuretech platform that unleashes the power of human capital by delivering timely,...

18/04/2024 Insurance Innovation

Discovery Home Loan Protector

South Africans have more than $50 billion in home loans – 7 times more than credit cards. Choosing the right...

Related news & insights

Digital Reinvention
18/04/2024 Interview

CLV: Gaming insights are helping banks pinpoint key long-term customers

At an online event hosted by Qorus Digital Reinvention Community and marketing firm Numberly, Zachery Anderson, NatWest’s Chief Data and...

07/04/2024 News

Consors Finanz and MG Motor Deutschland forge deeper ties

Consors Finanz is becoming the primary financial partner for MG Motor's entire distribution network, encompassing both dealer and agency models.

Digital Reinvention
06/04/2024 News

Chase Media Solutions: A digital platform bridging brands and consumers

The platform not only facilitates direct engagement between brands and consumers but also ensures that Chase customers receive tailored offers...

Digital Reinvention
02/04/2024 Interview

Fibabanka wins silver at Qorus Reinvention Awards – Europe 2024 with 'Alışgidiş (Get and Go)'

Turkish bank Fibabanka won silver in the Distribution category at the Qorus Reinvention Awards – Europe 2024 with ‘Alışgidiş (Get...