Earn ‘stockback’ instead of cashback? Trust Bank, Tiger Brokers woo S’pore users with this card perk
Incentives draw users in, but only a good app keeps them coming back, said experts.
Singapore's banks and brokerage firms are offering a new type of rewards program that allows customers to earn stockback, rather than cashback. This strategy is gaining traction in a market where traditional brokerage fees are becoming less significant. Trust Bank and Tiger Brokers have both introduced this concept to differentiate themselves in the competitive landscape.
The Trust Freedom card offers a 3% stockback on local and foreign transactions until the end of 2026, after which it drops to 2% for local spending and 0.5% for overseas spending. Once users accumulate $10 (US$7.90) in stockback value, the rewards are automatically invested into a US stock or ETF of their choice, up to $500 a quarter.
Tiger Brokers' Tiger Boss debit card, launched in March 2024, provides a 1% cashback in preferred shares on eligible daily spending until the end of 2026. The card rewards can be exchanged for popular US tech names, such as Apple and Nvidia, or for US ETFs. Finance experts believe that this stockback approach is more effective at engaging customers than cashback or referral bonuses.
It encourages customers to start investing their rewards, but they must first trade the shares, which can be less liquid than cash. The Trust Freedom card offers flexibility, allowing users to opt for cashback, stockback, or an upcoming air miles reward. Both programs aim to help non-investors start investing through daily spending, building the habit of micro-investing and dollar-cost averaging.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
