While some banks are phasing out debit card rewards programs, Regions Bank plans on rewarding its customers for their spending habits, adding value to their banking experience by offering personalized, targeted rewards through the online banking experience.
The Birmingham, Ala.-based bank is one of the first to participate in the new merchant-funded rewards program offered through a just-announced partnership between financial services technology provider Fiserv and Cardlytics, a transaction marketing group. Rewards appear within a customer's online transaction history, and are tailored to a customer's spending habits.
"We strive to add value to every interaction we have with our customers," said Tom Brooks, EVP, Cards & Payments, Regions Bank. "Our program allows us to deliver offers from recognizable companies that people interact with everyday, so we’re providing our customers with a simple way to earn relevant rewards based on their individual spending patterns. And, because the offers are integrated into online banking, we can present them in a seamless, unobtrusive way."
Say a customer shops at a fast food restaurant. When they go to view their transaction history, the customer might be presented with an offer to save money at another restaurant. The customer can then receive a discount by using their bank's debit, credit or prepaid card to make the purchase. The Cardlytics transaction marketing platform enables financial institutions to tailor offers to be funded by local, regional or national brands and are personalized based on the customer's transaction behavior.
"The integration of merchant rewards into the daily banking experience is a highly relevant proposition for both consumers and financial institutions," said Jacob Jegher, senior analyst, Celent. "They provide a unique marketing opportunity for financial institutions and enhance the banking relationship for the consumer. This type of value-added convenience has the potential to become a key component of online banking."
Customers can opt-in or opt-out of the service as they wish. Banks can implement the program as cash-back, points or miles to supplement or potentially replace existing debit card rewards programs.
"Financial institutions are looking for ways to differentiate themselves in the marketplace while continuing to provide added value to their customers, and our platform is a proven method to achieve both," said Lynne Laube, President of Cardlytics. "We are pleased to count an industry leader like Fiserv as a partner and look forward to working closely with them to serve the needs of their financial institution clients."