Only a third of consumers are happy with loyalty rewards from their banks

By Aisling Finn on Friday 19 November 2021

Digital Banking

Cashback was the most popular reward among those surveyed.

Only a third of consumers are happy with loyalty rewards from their banks
Image source: Nigel Verdon/Railsbank.

 

It’s a well-known fact that banks don’t exactly have a stellar track record when it comes to customer satisfaction, and new research from Railsbank has shone a light on just how customers feel.

Surveying over 2,000 consumers, Railsbank found that only 35 per cent of consumers are happy with the loyalty rewards their bank offers them

Over half (59 per cent) of those surveyed said that they like getting something in return for their loyalty and 49 per cent like to see rewards help their money go further and 37 per cent said they were more likely to spend money with a brand that offers rewards.

“Where legacy finance might be worried, brands should see opportunity. Interest and cashback have lost their appeal among consumers,” Nigel Verdon, CEO and co-founder of Railsbank, said. 

“What once worked well will not guarantee future success. Forward-thinking brands are already building financial experiences into their customer journeys, delivering better rewards and experiences that young people value.”

Cashback was the most popular reward among those surveyed, but for 18-24-year-olds, discount codes came ahead of cashback, free shipping and redeemable points 27 per cent versus 19, 15 and 11 per cent respectively.

The survey also delved into consumers credit card habits.

More than half (56 per cent) of 18-24-year-olds would sign up for a credit card from their favourite high street brand, 55 per cent from their favourite band and 42 per cent would get a credit card from their favourite sports team.

Consumers also want their credit cards to reflect their own beliefs, with 52 per cent of 18-24year olds wanting a credit card that supports sustainability and 48 per cent wanting a credit card to donate to charity with every purchase.

Sign up for our newsletters


Your daily 7am download of all things alternative finance and fintech.

Fintech and alternative finance headlines with an exclusive Editor's Note each week. Delivered Monday at midday.