Direction Series  New From Synergistics

Overview

In a relatively new development in rewards marketing, financial institutions are beginning to leverage use of their credit and debit card reward programs to bolster checking accounts and foster other bank relationships. Rewards linked to checking accounts can be based on service usage, balances, or transactions. Checking account rewards, like all reward programs, are expensive and require careful evaluation. [D65]

Strategic Questions

• What is the current extent of consumer awareness and usage of rewards programs tied to checking?
• What are the potential benefits of offering checking rewards?
• To what extent do consumers find checking rewards to be valuable?
• What are potential barriers or stumbling blocks for checking rewards programs?

List of Exhibits

1. Balance or Activity Based Rewards for Checking Customers
2. Participate in Balance or Activity Based Rewards for Checking Customers
3. Current and Potential Requirements for Checking Account Rewards
4. Value of Checking Rewards Among Participants
5. Value of Checking Rewards Among Nonusers
6. Reasons Do Not Value Checking Rewards
7. Various Reward Programs
8. Average Number of Years Held Primary Checking Account by Household Income
9. Average Monthly Checks Written by Household Income