Hy-Vee deploys financial services for buyers
- Hy-Vee began offering financial services, including checking and savings accounts; auto, home and pet insurance; and home and consumer loans through a program launched in collaboration with Midwest Heritage, a bank owned by the grocery chain, according to a press release.
- The program, which goes by the name Hy-Vee Financial Services, also offers perks such as savings on mortgage and pet insurance to members of the Fuel Saver + Perks and Hy-Vee Plus loyalty programs. of the supermarket chain.
- Hy-Vee has worked over the past year to expand the range of services it offers to buyers as it seeks to deepen its relationship with its customer base.
Hy-Vee uses the recently announced financial services program to tie financial products directly to groceries. For example, the retailer offers Hy-Vee Plus program members a $ 700 gift card if they get a mortgage through Hy-Vee Financial Services.
To promote the effort, Hy-Vee and Midwest Heritage have set up kiosks in 210 of the retailer’s more than 275 stores in recent months where customers can inquire about available services by scanning a QR code, according to the press release. Six of Midwest Heritage’s eight branches are located in stores operated by Hy-Vee. One of the branches is located in a Hy-Vee in Kansas, and the others are in Iowa.
Hy-Vee plans to add life insurance, health insurance and other options to the range of services it offers under the program later this year.
The grocery chain’s foray into financial services follows the November launch of a expanded membership program which offers buyers perks such as free shipping and concierge services for an annual fee of $ 99.
Other food retailers have also offered their customers access to financial products, with Kroger in particular showing double-digit profit growth in its the personal finance unit for the first quarter. The grocer’s personal finance business provides home equity lines of credit, life insurance, pet insurance, and more.
Hy-Vee’s program stands out because it involves a bank owned by the grocer. For example, mid-Atlantic grocery store Giant Food hosts branches managed by PNC Bank in 82 of the chain’s 164 branches, while supermarkets operated by Safeway host SunTrust branches. Walmart offers financial services, including checking accounts, credit cards, and debit cards that can be recharged through Green Dot Bank.
The financial services program is the grocer’s latest effort to expand its range of services for customers. Hy-Vee also has DSW Designer Shoe Warehouse stores in some of its stores, in addition to selling shoes online in partnership with DSW’s parent company, Designer Brands. In March, the grocer teamed up with the W Nail Bar to open in-store nail salons.