Third Way of Shopping – Anyone can do it

First way, cash; second way, credit card; the third way? target, budget, save and buy.

The Third Way of Shopping by Mach is a banking initiative by Hong Leong bank targeting generation Y; people who are born into the Internet age and who live breathe Internet.

It has the noble intention of encouraging and educating the Internet generation to spend money wisely online and offline..

The idea is very simple.

First, it encourages monetary savings in the most conventional way; save to the bank – let the bank manage the money for you.

Second, it exposes Internet banking facilities – allows one to have access to banking facilities 24/7.

Third, it promotes e-commerce – direct integration between your savings and shopping.

In order to get started, the first thing to do is to sign up with Hong Leong bank.

It is powered by Mach by Hong Leong; financial banking products by Hong Leong bank.

In retrospect, Mach is powered by Hong Leong Connect, which is Hong Leong Online Personal Internet Banking Service (HLO) and new mobile banking app under a single platform.

The products of Mach consist of:
  • Money Box Deposit Account – deposit account and debit card combo.
  • Dream Jar Saving Account – saving accounts with competitive saving rates.
  • Mach FD Fixed Deposit - Deposit from as low as RM 1,000
  • Mach Credit Card. – Annual fees waived for life.
  • Cruise Control Car Loan – Huge savings on interest charges.
  • I.O.U Personal Loan – Your personal released within 60 minutes.

The focus of Third Way of Shopping by Mach is to leverage on the Dream Jar product which is not just a saving account product; it is also a financial management and budgeting tool.

For instance, let’s say that someone wants to buy a laptop with costs of RM 4,500. The person then disciplines himself up to allocate a steady RM 250 per month in other to save this amount. By 18 months, the monetary goal will be achieved and he can proceed to buy the laptop without using credit cards or hurting other financial commitment.

Of course, money is still money and granted that income is fixed; the idea is really to encourage a culture of smart spending and force savings.

Using Dream Jar, besides earning competitive interest rates of 2% p.a, one will also get rewarded with extra cash when achieving goals through prompt monthly deposits.

Coming to the e-Commerce part of it, Third Way of Shopping by Mach is currently inviting merchants to participate. It is up to merchants to publish product offerings that will lavish other incentives such as discounts and rewards.

To kick start the project, Internet personalities zeroed-in with ideas and suggestions. These personalities consist of Lucas Lau, Editor of; Chris Tuck, blogger world of Tockism; J.L Wong, blog and Nigel Yap, Editor of Stuff magazine.

Most of the merchandizes made available are premium goods such as Dell Alienware M14X Gaming Laptop, Mr. Bathing Ape 3 Piece Suit and Trip to India and etc. It won’t be fast moving consumer goods or necessity goods like prepaid cards, car petrol, food and movies on DVDs.

My take for this – based on entrepreneurship view point – is that it creates value for the economy. First, premium goods don’t get sell a lot, maybe with the exception of iPhone or Samsung Galaxy which we may want to class it under necessity category. Hence, it makes sense for merchants to promote premium goods on alternative platforms. Secondly, the commission derivable from sales of premium goods will be more than enough to cover transaction fees if any.

Then again, the economy is a free market. We may also find DVDs with titles such as ‘How to live a sustainable green lifestyle’ being put up as merchandizes for sales in the future.

Mach by Hong Leong also can be seen as the EASY initiative by RHB Bank – community convenient banking facility that sort of concept. It currently has 6 branches in Klang Valley; IOI Mall, Mid Valley Megamall, e@Curve, Paradigm Mall, Sunway Giza and Sunway Pyramid.


Rahul said…
Thank you for the informative post. It was thoroughly helpful to me. Keep posting more such articles on software training institutes in Chennai and enlighten us.