The proliferation of loyalty schemes in recent years has generated a series of challenges. Ubiquity and complexity have diluted their impact, and while signup rates remain high, dormancy is an increasing issue for a significant proportion of schemes. The global pandemic has served as both an opportunity and a threat to loyalty schemes in general: schemes have been redefined to reflect the physical and financial restrictions currently in place.
This report analyzes the current state of loyalty programs across banking and payments, the value they offer customers and banks, as well as the numerous challenges facing these programs amid both the growing role of digital banking and payments and the COVID-19 pandemic.
- Overall, reward programs are not a priority when selecting a financial provider. Instead, transparency, simplicity, and service are the factors consumers are most likely to prioritize.
- The pandemic has seen many loyalty schemes reconfigured, rewarding customers for safely supporting brands and introducing benefits relating to day-to-day savings - which are especially appealing during recession.
- Neobanks are winning millennials via a combination of digital functionality, fresh branding sometimes built on themes (such as sustainability and wellbeing), and gamified loyalty programs that sync with the brand.
- Traditional banks are attempting to address this competition, launching their own de-branded neobanks and sometimes incentivizing use of their own apps as part of their broader reward program.
Reasons To Buy
- Gain insight into best practice cases studies from around the world and from related industries such as retail.
- Understand the challenges facing loyalty programs the world over.
- Learn about your competitors’ strategies in this space.