It was announced in October 2016 that ANZ would be ceasing its consumer banking operations in Singapore and transferring its assets to DBS.
At the time, I mentioned that you might consider cashing out your ANZ Travel $, given that we didn’t know what would happen with the bank’s credit card program post the merger. I myself cashed out 10K of my ~13K ANZ Travel $, assuming that ANZ would eventually ask all cardmembers to convert their points by a certain date or lose them. I took the remainder 3K as a write off.
Well, perhaps I didn’t have to do anything, because the following notice has popped up on ANZ’s website.
In case you can’t read that, it says
Your unused Rewards Points will be transferred to DBS for future usage if you choose not to redeem via the ANZ Rewards Programme before the latest dates specified below:
- 19 June 2017: For Redemption of KrisFlyer Miles or Cash Credits
- 06 June 2017: For Redemption of all other Rewards including Travel Cash
No further information is given about the mechanics of the transfer (what does it mean for customers who don’t have DBS cards?) or the ratio (1 DBS point to 2 Travel $ would be the “fair” amount).
The lack of a ratio does worry me slightly, Because think about it from a business point of view- Travel $ are a liability on the balance sheet of ANZ. ANZ got the benefit of merchant fees etc when customers used their ANZ cards to pay for things. ANZ then incurred a liability in the form of the Travel $, which represent a commitment to deliver miles to the customer at some future point in time (and to incur an expense buying the miles from SQ/CX).
DBS is now taking over ANZ, and assuming those liabilities on their balance sheet by converting Travel $ to DBS points. But DBS didn’t get the benefit of those ANZ customers spending money on their cards (well, ok in some abstract way they did, because when they paid for ANZ I imagine that got priced in). So will they be willing to assume the liability at the full rate? Or will this be an opportunity for a devaluation in the transfer process?
For the record, I don’t think DBS will pull a dick move or anything (because that would be a super dick move), but I’d rather they come out and clarify this sooner rather than later. Whatever the case, I certainly hope they announce more details before 19 June, because this will let people decide whether they want to cash out their Travel$ or let them be converted to DBS points.
(HT: The Shutterwhale)