Generous Benefits Through Credit Cards to Win Back Card Customers

By Surag Ramachandran, Associate Vice President – Marketing

In today’s volatile world, the credit card industry is encountering new challenges in the form of changed customer behavior induced by the COVID-19 pandemic and new innovative business models. The emergence of Buy Now Pay Later (BNPL) model is also a significant disruptor that the industry must address. According to Mercator Advisory Group, the volume of BNPL transactions in the US alone will be around $100 million annually by 2024. Andrew Walduck, COO, Latitude Financial Services observes, “People like the transparency of no added fees, and a pre-determined instalment plan helps them budget.”  

Banks like Wells Fargo, Citibank, and Bank of America have now launched new elite cards with generous benefits including welcome bonuses or cashback on purchases. This was a good move because customers today expect higher levels of empathy and want to be understood better based on their goals, lifestyles, likes, and preferences. Banks need a solution that offers the right insights to get to know their customers better and offer products like credit cards that are relevant to them. To effectively target prospective customers with such offerings, banks and financial services institutions must break down data silos to run campaigns and offer products and offers that are personalized and contextual. 

For banks to do well in the credit card business, engagement with the customers is key. Credit cards are no longer just a physical plastic product that is delivered to the customer and renewed occasionally. Banks must take a leaf from the technology playbook and other providers like payment apps, thereby preventing customer attrition. Hyper-personalization will be key in the credit card segment. Providing benefits in the form of loyalty points, rewards, offers, and being a part of the larger ecosystem of non-finance offerings will make cards attractive to customers. 

SunTec Xelerate platform helps banks position their credit cards program to attract and retain customers and earn higher wallet share by meeting customer expectations. With SunTec Personalization Solution, banks can dynamically curate products and offers based on insights drawn from customer behavior and their unique needs. SunTec Benefits and Loyalty Management can create targeted and distinctive loyalty programs that are one-of-a-kind with insights that matter. These programs can enable relationship-driven reward programs that foster positive customer financial behavior. SunTec Ecosystem Management and Monetization can be effectively used to monetize business ecosystems by partnering with finance as well as non-finance partners.  The offerings and rewards that are co-innovated with ecosystem partners can help increase the bank’s revenue and profitability. 

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