Organizations that provide financial services are on the verge of a new era. First first, online presence has proven to be powerful because to digital disruptors like FinTech. This forced the sector to acknowledge that digitalization is now a necessity rather than a competitive advantage.

Second, consumers are paying more attention to the standard of services. For the time being, they may stay with a known provider, but if their request for a more tailored, pertinent treatment is denied, clients may decide to switch to rivals who have a stronger customer retention plan.

The COVID-19 epidemic has further exacerbated all of these problems. Customers today are more “digital” than ever before, and they search online for the greatest offers from banks and insurance providers. Additionally, if you aren’t at the top of the list, even devoted clients will stop doing business with you.

By implementing a loyalty programme that is targeted at the problems that banks and other financial services providers encounter, you may deepen your relationship with your audience. A cutting-edge solution for customer retention can promote enduring trust, protect clients from the competitors, and even support your digitization initiatives.

What Is a Loyalty Program for Financial Services?

Banks and insurance firms can enhance brand loyalty and purchase frequency by implementing financial services loyalty programmes. They are distinguished from other, more conventional incentive systems by a variety of distinctive characteristics, including the following:

Customers no longer buy items in the conventional sense, thus financial and bank loyalty programmes encourage participants to make purchases using credit cards or to promote service bundles like loans or mortgages.
Enrollment in financial loyalty programmes is constrained due to their distinct character. People must have an active account in order to join; otherwise, they will not be able to advance.

Companies in this sector have fewer chances to engage with their devoted customers. Typically, clients only contact them for contract renewals. Because of this, loyalty programmes place a high priority on developing new touchpoints.
Last but not least, financial and bank rewards programmes are frequently used to advertise content, inform customers about current deals, and increase the brand’s online visibility.

8 Examples of Reward Programs from Banks

Bank loyalty programmes give clients the chance to be rewarded and encouraged. Due to the fierce competition among loyalty programmes in this market, banks should consider loyalty programmes that foster long-lasting ties with their clients. An efficient bank loyalty programme will assist you in increasing customer happiness, providing current customers with better prices on comparable items, raising brand recognition, and decreasing customer turnover. The top bank rewards programmes are listed below for your inspiration:

Citi ThankYou from Citibank

With its headquarters in New York, Citibank is a multinational American investment bank and financial services company. The company’s loyalty programme exemplifies the power of these programmes in this industry:

Citi credit cards are required for enrollment, and for every $1 spent with the card, 1 point is gained.
For the first 100,000 points, all redemption options will earn 10% back in points.
For $25, customers can purchase 1,000 points.
Points can be transferred from one member’s account to another.
Travel incentives, gift cards, cash rewards, mortgage or student loan repayment, and even charitable donations can be made using points.

Preferred Rewards from Bank of America

The Bank of America is a Charlotte-based multinational American investment bank and financial services provider with hub locations all over the world. The business delivers better rewards at each rank in its tier-based bank loyalty programme.

The Gold level provides a mortgage reduction, a 5% interest rate boost, a 25% incentive on qualified purchases, priority credit service, and no fees for some banking services.
The Platinum level necessitates a balance of at least $50,000, boosts the value of all current privileges, gives users 12 free ATM withdrawals annually, and enables free online stock and ETF trades.
Users can join the Platinum Honors rank, which offers even better discounts, if their account balance is $100,000 or more.

ICBC’s incentive programme

ICBC, a Chinese banking firm, provides users with a straightforward loyalty programme that focuses on travel rewards, but customers should consider it because of the company’s affiliation with so many different travel agencies:

Every HKD or RMB a user spends with their ICBC credit card earns them one point in the reward programme.

A cash discount, cash coupons, air miles (Air China PhoenixMiles, Hong Kong Airlines Fortune Wings Club Miles, China Southern Airlines Sky Pearl Club), and charitable contributions can all be obtained by exchanging points for rewards (Caritas – Hong Kong, Yan Oi Tong Charity)

Eraser for Capital One purchases

The American bank holding corporation Capital One allows its clients to use their rewards cards to make travel-related transactions, then deduct the amount of such purchases from their balance using miles already accumulated:

Customers can accrue miles on all purchases, redeem them for a variety of travel-related purchases, and receive unlimited cash back incentives.
When using Paypal or Amazon.com, points can be redeemed. Rewards are valid for

Customer loyalty is a great investment.

As you can see, loyalty programmes are flexible tools that can influence a variety of KPIs for the financial services industry. Advancement in digitization and standing out from the competition won’t be a challenge with the appropriate mentality and loyalty technology.

You can schedule a demo with one of our specialists or submit an RFP whenever you’d like to launch or update your own programme.

Don’t forget to download Antavo’s Customer Loyalty Report 2022, a comprehensive report that offers a wealth of data and upcoming market trends to assist you in navigating the world of next-generation loyalty programmes.