Finance is integral to every customer’s daily life, enabling Fintech brands to collect data and stay connected with customers. As a result, fintech app interactions increased by 73%. The comfort of digital transactions has outplayed conventional methods. Hence, brands are chasing customers, as 20% of large enterprises will adopt digital currencies by 2024.
Amidst this evolution, loyalty programs have proven to be a worthy marketing asset. For example, 81% of modern bank customers expect rewards, and leading industry brands like Paypal and Silicon Valley Bank, have launched a loyalty program.
To retain customers, brands test various tactics like partnerships, experiential rewards, gamified experiences, and more. Let’s understand which tactics have worked for them.
Top loyalty programs in finance
1. CitiBank – Citi ThankYou Rewards
CitiBank’s ‘Citi ThankYou Rewards’ follows a simple point-based structure. This bank loyalty program enables members to earn points for cash and online transactions, like bill payments, personal loans, online shopping, or flight booking.
The key here is that members can use their points to share with other loyalty program members. It inspires community building and helps brands influence customers’ social networks.
Benefits of Citi ThankYou Rewards
- Gift cards – Members can redeem gift cards from major brands (including Amazon, CVS, and Best Buy), restaurants, flight tickets, and movie/concert tickets.
- Redeem points with partner brands – Members having a compatible Citibank ThankYou card can participate in the partnered programs. It allows them to transfer their Citi points to a different loyalty program. For example – Members can transfer all points to the Flying Blue loyalty program and receive 25% bonus miles with Air France.
- Donate to charity – Customers can donate their loyalty points to charitable organizations.
Key Takeaways
- A loyalty partnership is an incredible hack to increase customer engagement. Citibank excels in it.
- The community-based approach enables brands to get maximum referrals and leverage social networks.
2. Bank of America – Preferred rewards
Bank of America has approximately 66 million customers and is among the leading financial service providers. The loyalty program, Preferred Rewards, uses a tiered structure, offering distinct benefits to each tier. Member’s eligibility for each tier is decided based on their bank account balance.
Benefits of Preferred Rewards
- Gold tier – Members get a 15% reward bonus, a 5% boost on interest rates, mortgage reduction, and no-fee transactions at other bank ATMs.
- Platinum tier – The value of all existing benefits increases once a member is eligible for the Platinum tier. Furthermore, members get free online stock and ETF trades.
- Platinum honors tier – Members can enjoy an increase in the value of all existing benefits and unlimited ATM transactions.
Key Takeaway
- Leveraging deep data analytics to deliver personalized experiences and tailor loyalty programs to customers’ needs ensures a sustainable growth.
3. Zion’s Bank
Zion’s bank loyalty program, ‘Pay for A’s,’ rewards middle and high school students for good grades by depositing money for each “A” on the student’s report card.
The aim is to connect emotionally with students with rewards and help parents financially.
Benefits of the program
- For every “A,” students get $1 deposited into their ‘Young Savers Account.’
- The brand offers 36 awards for $500 each and two $1,000 savings accounts for each school per year.
- Every year, 36 students from different geographic regions of Utah & Idaho are rewarded through a community draw.
Key Takeaways
- Zion uses a customer-centric approach to attract customers by rewarding students for good grades.
- The brand focuses on empathy to connect with its target audience.
4. Discovery Bank’s Vitality Rewards
Discovery bank, a brand that operates 100% digitally, focuses on providing customers with a seamless, highly functional banking experience through its loyalty program.
Vitality Reward members can earn “Discovery Miles” and “Vitality Active rewards” for every credit card transaction related to health and wellbeing, such as gym memberships, health products, and sustainable rides.
It encourages customers to indulge in healthy activities and get rewarded for the same.
Benefits of the program
- Discovery Miles: Members get up to 20% off on Uber rides, up to 40% savings on international return flights, and discounts on fuel and holidays.
- Vitality Active Rewards: Members are eligible for a 25% cashback on monthly gym fees at participating gyms.
Key Takeaway
Data analytics allowed Discovery Bank to adapt adequately to match evolving customer behavior post-pandemic at the right time, particularly the increase in health-conscious shopping to encourage frequent purchases.
5. utu Rewards
utu is a Thai-based fintech company that handles tax-free shopping globally. The members can earn points for various activities, including watching videos, connecting credit or debit cards with the mobile app, or participating in running competitions!
Customers getting rewards to post a running competitor or watching videos is an attempt to gamify the customer experience.
Benefits of joining the program
- Points for watching videos – utu offers 50 points to all participants for watching specific videos.
- Rewarding information sharing with points – utu offers 100 points to members for adding their credit or debit card to the app.
- Additional points – utu offers multiple point-earning opportunities, like virtual fun runs, for 500 points.
Key Takeaway
- The gamified approach of utu Rewards encourages customer engagement.
6. Wells Fargo – Go Far Rewards
Wells Fargo is a reputed financial service provider in America. Its loyalty program is accessible to all customers having a Well Fargo credit card. The brand offers four different cards. Each card provides different rewards to customers, like a reduced interest rate on student/car loans, zero ATM fee, safety deposit box discount, and increased interest rate on the account.
Benefits of the program
- Wells Fargo Active Cash card – Members get a $200 bonus cash reward, unlimited 2% cash rewards on purchases, and 0% intro APR for 15 Months.
- Bilt Mastercard – Earn points on rent, travel, dining, and other purchases. These points can be donated to the Red Cross community.
- Wells Fargo Autograph – Members get a $3000 welcome bonus, 0% APR for 12 months, and 3x points on travel, dining, fuel, and other purchases.
Key Takeaway
- Offering unique and experiential rewards like reduced APR, rent, travel, and dining rewards help brands forge an emotional connection with customers.
Klarna – Vibe Rewards
Klarna is a popular ‘buy now, pay later’ service provider. The loyalty program – Vibe – allows members to earn points by shopping with partnered brands. Klarna’s loyalty program is partnered with over 250,000 stores, including H&M, Etsy, Foot Locker, Sephora, Adidas, and Macy’s.
Benefits of the program
- Members can use Klarna’s digital credit card to shop in physical stores of retailers in the mobile app.
- The program’s ‘pay in four’ feature allows customers to pay for products in four installments with no interest.
- Members regularly get personalized recommendations inside the mobile app for their top brands.
Key Takeaways
Integrating the mobile app for customer transactions allows the brand to collect first-party data and develop personalized experiences.
Fintech is redefining customer experiences!
Technology innovation has turned ‘finance’ into the ‘fin-tech’ industry. Customers are tech-savvy and ready to experience the latest technology. It simultaneously pushes brands to create a holistic customer experience with data, technology, and strategy.
Financial brands have access to piles of customer data. From daily essentials to luxury shopping, finance is everywhere. With deep data analytics, brands can understand customer behavior and create an agile strategy that adapts to market situations.
