Internet banking, or rather branchless banking, is making traditional methods of handling money and managing accounts outdated, as it provides users with constant and convenient access to banking facilities.
In this regard, those digital banks that have developed effective loyalty schemes can be distinguished: thus they offer the clients various bonuses. This article aims at discovering the best digital bank accounts in the United States of America in terms of loyalty programs to complement the banking services.
Enhanced rewards for everyday banking
Comprehensive cashback offers
Arguably, the best aspect of digital bank accounts with loyalty programs is the flashy cashback incentive. This is led by Chime and Discover Bank for offering their clients cash back on the necessary expenditures of daily life.
For example, Chime collaborates with different retailers to make customers get a cashback in their foods, eating joints, and other necessary expenses. It motivates users to make Chime their go-to bank for transactions to save their cash on costs that they incur on a daily basis.
Another fine case to explore is Discover Bank’s Cashback Debit account. It gives cashback of 1 percent on the first $3000 spent on the debit card on a monthly basis. Unlike many other programs that incentivize spending with the need to open a credit card with the company, this program offers a direct one.
To the clients who do not trust the credits but would wish to be part of the rewards, it comes in handy. They retain the flexibility of being incorporated into the customer’s normal everyday mode of spending so that they can accumulate such benefits in the long run.
Tiered loyalty programs
Digital banks are also bringing additional more creative type of approach into their overdraft charges as well as into tiered loyalty programs for the loyal customers. In this regard, Varo Bank has launched a program that brings about the differentiation of accounts by activity and balances.
For every tier, there are usually bonuses including the rates of savings, cash back, and access to priority customer service. Apart from that, it also ensures that the customers deposit and utilize more money in the bank by offering them incentives in form of interests.
Programs like these are tiered, and this gives them a more exclusive look and feel, from which the customers get the feeling, they are valued. This also aids in maintaining existing clientele while at the same time targeting more clientele looking for better experience deals in banking.
Thus, it is possible to comprehend that tiered benefits offered by digital banks will help the companies to stand out in the contemporary environment. Additionally, these benefits foster a deeper sense of customer loyalty and satisfaction, further solidifying the bank’s reputation and customer base.
Exclusive perks and bonuses
Sign-up bonuses
When targeting the new customers, digital banks tend to give out attractive client bonuses. For instance, Aspiration’s first-month welcome bonus can be generously large based on the deposit and the first couple of months’ activity. These bonuses help attract new clientele as they are received the minute a new account is created.
Another example of a well-known digital bank is Ally Bank that often launches the promotion codes for new consumers. Some of these are: Cash incentives for the creation of new accounts and with direct deposits in set period.
Holders gain more than just the first clients during their signup and encourage the new account holders to engage with the accounts immediately and become a regular part of the people’s everyday financial activity.
Referral programs
Referral programs are also used by digital banks to reach out to more people. For instance, Current provides a reliable system of incentives in the form of cash bonuses for each new referred customer from the friend’s or family member’s list. This creates a win-win situation: existing clients get to earn something while the bank on its part gets new clients from trustworthy referrals.
Such incentives prove to be unique because they tap into the use of word of mouth information dissemination. It has been found throughout research that word-of-mouth communication is often believed and effective to be implemented by the customers.
Referral systems can increase the base of the digital banks as they get access to the customers’ networks, while also raising the number of satisfied users. This strategy for organic growth usually has the effect of increasing the customer retention, since new customers who come from recommendation usually are with better values and tend to be more staked in.
Innovative savings incentives
High-yield savings accounts
It is known that digital banks provide an opportunity to deposit money in the competitive high interest compared to classical banks’ rates. For instance, Marcus division by Goldman Sachs is providing a high-yield savings account without any charges and reasonable interest rates.
The mobile banking service enables customers to compound their savings faster than the nominal savings accounts provided by physical based banks. This accelerated growth is achieved through higher interest rates and convenient, automated savings tools.
Ally Bank also shines in this regard: its Online Savings Account has one of the highest annual percentage yields (APY) on the market. Also, Ally bank offers special incentives to users of its loyalty program through special bonuses that are offered after certain periods of time, the bonuses can be made to appear depending on the balance of the customer’s account or their routines contribution to the savings.
Goal-oriented savings programs
Some of the innovations implemented by digital banks are saving schemes that are goal-based tied to loyalty programs. Simple for instance, has a feature called ‘Goals’ through which customers are able to set specific saving goals.
The bank then assists the customers to accomplish these goals with the help of options like automatic transfer as well as tips for saving money. Digital banks therefore entice its customers to save through making it look like a game through the use of a smartphone application.
They provide segments and incentives with the target saving amounts, making the users maintain their saving goals. Incorporation of these features in digital banking platforms ensures easy and fun experience in handling and nurturing the saving funds.