Traditional financial institutions (FIs) often grapple with a pressing question: How can we effectively compete against industry giants? This dilemma concerns more than matching earning rates or replicating existing rewards programs. It's about carving out a distinctive space in the market—one that leverages each FI's unique strengths and capabilities.

At ampliFI Loyalty Solutions, we understand the challenges that FIs face in this competitive landscape. That's why we advocate for a strategic shift in the competition approach—focusing on customization and real-time rewards as key differentiators. Our enterprise engagement strategy goes beyond traditional rewards programs by incentivizing consumers to utilize other products and services offered by the FI, making it a true loyalty strategy rather than just a single-product rewards program.

How FIs Can Stay Competitive

National card issuers are detached from the everyday cardholder, which is evident in their celebrity advertisements and excessive spending. With such rich programs, how can community FIs compete? The answer lies in playing to their strengths. While national card issuers may have vast resources and economies of scale, FIs possess intimate knowledge of their consumer base, deep-rooted community ties, and agility to innovate rapidly.

“Financial institutions need to compete differently,” says Heidi Young, EVP of Sales and Business Development at ampliFI. “Instead of vying for the highest rewards earning rate or cashback percentage, you should compete by leveraging the close relationships you cultivate with your cardholders and the diverse range of enterprise engagement products you can integrate into your programs.” 

FI’s have the unique advantage of knowing their communities. By capitalizing on these strengths and embracing innovative loyalty features like customization and real-rime rewards, FIs can create compelling value propositions that resonate with consumers and drive competitive advantage.

Crafting Tailor-Made Loyalty Programs

Customization is the key to true consumer satisfaction. According to Marigold1, personalized experiences result in higher engagement, with 78% of consumers stating they are likely to engage with a customized offer. Not only does this drive engagement and spend, but it also significantly influences consumer satisfaction. 85% of consumers say their top brands treat them like individuals, whereas 51% of consumers expressed frustration over irrelevant offers and messaging.

Unlike one-size-fits-all solutions offered by national card issuers, ampliFI’s end-to-end loyalty platform gives FIs the advantage of crafting tailor-made loyalty programs that resonate with their consumer base. By leveraging data analytics and consumer insights, FIs can design rewards programs that reflect their consumers' preferences, behaviors, and aspirations, fostering deeper connections and driving long-term engagement.

Integrating Unique Features and Services

Real-time rewards are another game-changing capability that FIs can take advantage of. In today's fast-paced world, consumers crave instant gratification and seamless experiences. Real-time rewards enable FIs to meet these expectations by providing instant redemption options and immediate notifications. This real-time interaction is not just about rewarding the cardholder for their transactions—it's about showing them that you recognize and appreciate their engagement with the FI, almost as another marketing touch.

Whether redeeming points at the pump for a discount on fuel or using points to get reimbursed for a purchase, consumers unlock value on their own terms, enhancing satisfaction and loyalty.

“It's about recognizing and rewarding cardholders' engagement across a spectrum of relationship products, fostering deeper connections and loyalty," says Heidi.

Competing against national card issuers is not about replicating their offerings but forging a distinct path that plays to Fis’ strengths. By utilizing their intimate knowledge of their consumer base and deep-rooted community ties, FIs can foster strong consumer relationships that result in sustained loyalty. Customization and Real-Time Rewards are powerful tools that enable FIs to create differentiated loyalty programs and stay ahead in a fiercely competitive landscape. With ampliFI's expertise and innovative solutions, FIs can unlock new opportunities for growth and success.

1Marigold