For many years, I had a bank account at Wells Fargo simply because my parents banked there.
But as I got older, I switched up my bank accounts, opening accounts with one bank because I was offered a better deal, and others because I preferred their app interface.
Banks are competing not just with each other, but with online banks and fintech companies as well. The average American has just over five bank accounts, according to Consumer Affairs.
And now several banks, including PNC, are revamping their loyalty programs beyond credit cards to try to encourage you to keep more of your money in the bank.
Banks want customers to leave more money in the bank
If it seems like every brand wants you to sign up for a loyalty program, you probably aren’t wrong. Brand programs are used by many companies as a marketing tool to retain shoppers.
And banks are no different. Several are thinking of how they can entice customers to keep their money in the bank.
Bank of America is overhauling its rewards program for bank customers with a personal checking account. Wells Fargo rolled out benefits for its premier clients last year, Banking Dive reported. Several banks also offer rewards for using their credit cards.
The appeal for banks to have loyalty programs is supported by several surveys.
Loyalty programs matter
- Customers are more likely to stay with a brand due to loyalty programs, according to an EY loyalty market study.
- The survey found that 39% find such programs make them more positive and 28% said it makes them far more positive towards the brand.
- Meanwhile, loyalty programs can also increase spending, with 57% likely to spend moderately or a lot.
- Consumers also feel they get more from brands that offer loyalty programs, a survey from Deloitte found.
With customers wanting brand loyalty programs, it’s no wonder that super-regional bank PNC decided to launch one of its own.
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PNC is adding its first rewards program
PNC Bank revealed it will launch its own rewards program for customers.
The program, called PNC TotalRewards, will allow all customers to avoid bank fees, earn points or cash on credit cards, and get better savings rates.
The idea is to build a partnership with customers, Alex Overstrom, head of retail banking at PNC, said in a statement.
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“When someone chooses PNC, we want them to feel the full value of that relationship. Not only in exceptional service and hospitality, but also in the meaningful financial benefits that come from building a relationship at PNC,” said Overstrom.
The program was rolled out in Chicago in late February and will be rolled out nationally later this spring, PNC shared. And about 20% of its clients will qualify for one of the tiers, PNC told Banking Dive.
PNC bank customers with at least $25,000 in their accounts can enroll in silver, gold, or platinum tiers, which provide various rewards. Those in gold or platinum tiers (which require $100,000 and $500,000 in PNC accounts), will also get access to PNC’s Priority or Concierge Care Center.
There are no fees to enroll, and customers will automatically move to higher tiers based on their balance with PNC. Members of the military are automatically enrolled in the silver tier, PNC confirmed.
“We’ve designed the program to provide tangible, straightforward benefits and to give clients more control over how they earn and use their rewards. It reflects who we are as a bank and the experience we want every client to have,” said Victoria Dravneek, head of PNC loyalty strategy and platforms.
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