Bank Loyalty Programs vs. Other Industries: What Banks Can Learn to Boost Customer Retention

Consumers today can change their financial services provider almost as easily as they change their preferred cereal brand. They expect their banking rewards programs to be as convenient and personalized as their favorite retail membership programs. However, banking transactions are often infrequent and less “fun,” making loyalty harder to cultivate. Banks must overcome this engagement gap by rethinking loyalty.

Keep scrolling to:

• Discover how loyalty programs in retail, airline, telecom, fuel, and travel differ from traditional banking models
• Learn what makes top-performing bank loyalty programs stand out in 2025
• Explore real-world examples of successful financial services loyalty programs
• Identify opportunities to align loyalty with evolving customer expectations
• Rethink loyalty as a long-term driver of customer value

Customer Loyalty in Banking

Customer loyalty is becoming a top priority for banks—and with good reason. As consumers grow used to personalized perks and seamless experiences, they’re expecting the same from their financial services providers. In fact, as reported by Accenture, only 45% of banking customers are satisfied with what rewards they receive.

Despite challenges like limited daily interactions, strict regulations, and rising competition from fintechs, banks still hold powerful assets that can help build deeper, longer-lasting customer loyalty.

To stay competitive, banks are now borrowing ideas from industries that have long excelled at loyalty. Think: tiered rewards like airlines, personalized offers like retailers, and lifestyle partnerships like travel brands.

Banks in the Middle East are increasingly taking inspiration from coalition-based loyalty models by linking their card-based loyalty programs with those of other industries such as airlines, telecom operators, and major retailers. This strategy enhances customer value, increases redemption opportunities, and strengthens partner ecosystems. Comarch has been instrumental in supporting several such integrations across the region, enabling leading banks to build interconnected loyalty experiences that drive higher engagement and cross-industry collaboration.

Industry by Industry Comparisons

Retail Industry Loyalty Programs vs. Banking Loyalty Programs



Retail loyalty programs are among the most advanced and customer-centric loyalty schemes. Retailers operate in a high-frequency, data-rich environment, which has led them to pioneer techniques in personalization and engagement that banks can emulate.

• High-Frequency Engagement: Retailers interact with customers weekly or even daily, building loyalty through consistent rewards on everyday purchases. By contrast, banks see customers less often (few monthly transactions). Increase engagement frequency, e.g., provide small rewards for regular online banking logins, savings deposits, or card usage, similar to how retail apps encourage daily check-ins.
• Personalization & Data-Driven Offers: Top vendors leverage purchase data and AI in retail to tailor promotions. Banks, holding extensive transaction data, can learn from this by analyzing spending patterns and offering personalized rewards, for example, cashback in a customer’s top spend category or tailored offers (dining rewards for the foodie, travel points for the frequent flier).
• Omnichannel and Seamless UX: Retail has led in blending digital and physical experiences. Many retailers offer creative loyalty cards (often digital now) that work across in-store and online channels, with apps for scanning, self-checkout, and curbside pickup. Banks can similarly blend channels, e.g. a banking app that streamlines branch visits with mobile check-in and queueing.
• Membership Models and Paid Loyalty: Premium loyalty programs (Amazon Prime, Costco Executive Membership) create a sense of exclusivity and immediate value (free shipping, special discounts), leading to increased loyalty. Banks might explore similar models: for instance, a subscription-based package that gives customers better rates, fee waivers, and exclusive perks (a concept of “premium retail banking” membership).

Retail shows that customer loyalty in the banking industry must be actively cultivated through frequent, data-driven interactions. Banks can implement loyalty management services that analyze customer data for insights (e.g., identifying if a customer frequently spends at a particular retailer and then offering bonus points or a discount for that retailer through the bank’s credit card).

They should invest in digital rewards and mobile app capabilities that keep customers engaged between major transactions. Essentially, turning banking into a more interactive, personalized experience can significantly improve bank customer retention. When banks make customers feel recognized (through personalized offers) and valued (through convenient service), they build the kind of loyalty that retailers have excelled at.

Airline Industry Loyalty Programs vs. Banking Industry Loyalty Programs

The airline industry pioneered modern loyalty programs with the launch of frequent-flyer miles in the early 1980s. Over the decades, airline loyalty programs have evolved into complex, tiered ecosystems that drive deep customer engagement.

• Tiered Rewards and Status Levels: Airlines excel at tiered loyalty, granting progressively richer benefits as customers spend more. This creates aspirational loyalty: travelers strive to reach the next status level. Best banking loyalty programs leverage tiered structures to encourage higher “share of wallet”.
• Partnership Ecosystems: Airlines long ago learned that partnerships extend a loyalty program’s value. Banks have the data and positioning to form similar ecosystems. A bank could partner with popular retail, travel, or lifestyle brands to offer points or cashback for spending in those categories. Many already do via credit card reward portals, but there is room to expand.
• Emotional and Experiential Loyalty: Airlines sell status and recognition. Banks can tap into this by enhancing the prestige factor of their loyalty programs. This might include VIP customer service lines for top-tier clients, invitations to exclusive events (similar to an airline’s invite-only tiers or special experiences for frequent flyers), or even physical markers of status (premium metal credit cards, etc., akin to luggage tags for elite fliers). Experiential rewards can also play a role: some banks have offered private travel lounges for cardholders or luxury travel experiences for redeeming points.
• Simplicity and Flexibility: Banks should strive to keep loyalty programs easy to understand and use. The best bank loyalty programs in 2025 are those that go beyond opaque points systems, for example, allowing customers to redeem rewards toward banking products (loan payments, fee waivers, interest boosts) or everyday expenses. This kind of practical flexibility increases perceived value.

Airlines taught the world how powerful loyalty programs can be and banks can leverage those lessons to enhance customer loyalty in banking. Key takeaways include implementing tiered loyalty programs, building broad partner networks, and creating an emotional bond through exclusive perks and recognition.

At the same time, banks should avoid the pitfalls airlines have encountered by keeping reward redemption generous and straightforward, and by focusing on customer value over short-term profit. If done right, banking loyalty programs can achieve the holy grail of airline programs: becoming a profit center in themselves.

Telecom Industry Loyalty Programs vs. Banking Loyalty Programs

The telecom industry (mobile and internet service providers) may not be as famous for loyalty programs as airlines or retail, but it faces a loyalty-critical challenge: high customer churn in a saturated market. Telecom companies have responded with loyalty and retention strategies that banks can learn from, especially as banks face their own form of churn (customers switching to fintechs or juggling multiple bank relationships).

• Retention Focus in a Low-Touch Environment: Unlike retail or hospitality, telecom companies and banks have relatively few touchpoints with customers after sign-up. Telecom loyalty programs aim to increase touchpoints and lock in customers by offering ongoing perks and reasons to stay. Banks could do the same—perhaps a weekly reward draw for customers who used their debit card that week, or surprise cashback credits for those who hit a savings goal.
• Omnichannel and Digital Engagement: Telecom firms have had to integrate their customer experience across stores, call centers, and digital channels, much like banks. Digital hubs, like mobile apps, allow customers to track cash rewards, manage their account, and receive bonus points. For banks, a mobile app should act like a “one-stop” digital wallet for rewards. A customer should be able to see their bank loyalty program status, points, and available offers right next to their account balance, encouraging usage.
• Personalization Challenges and Opportunities: Interestingly, telecom loyalty efforts have often been critiqued for a lack of personalization. Banks sit on equally rich customer data and traditionally know their customers better. By avoiding the telecom pitfall of one-size-fits-all rewards, loyalty programs for financial services can outperform telecom in relevance. For example, a bank noticing a customer’s mobile phone bills or streaming subscriptions in their transactions could offer a discount or bonus for using the bank’s credit card to pay those bills—a cross-industry tie-in that feels personal.
• Gamification and Longevity Rewards: Telecom companies have experimented with gamification and some providers give badges or status for number of years as a customer. Customer retention strategies for banks might similarly gamify loyalty beyond pure transactions: consider awarding badges for “5 years with the bank” or giving escalating rewards each anniversary to celebrate the relationship (perhaps a higher interest boost each year a savings account is kept, or increasing credit card cashback for long-tenured customers).

Telecom loyalty programs underscore the importance of customer retention in banking through continuous engagement. Banks should act before a customer considers leaving—rewarding loyalty proactively rather than reacting to attrition. Tactics like surprise rewards, loyalty tiers based on tenure, and embedding the loyalty program into the customer’s digital life are crucial.

Start treating loyalty as a core product to make customers feel that by staying with the bank, they continually unlock value that they wouldn’t want to lose by switching. This builds inertia in the bank’s favor, much as telecom companies try to do with their bundled services and rewards.

Fuel Retail Industry (Gas Stations) Loyalty Programs vs. Banking

At first glance, buying gasoline is a very different experience from using a bank. Fuel purchases are commodity transactions, often driven by price and convenience. Yet, the fuel retail industry has turned to loyalty programs in a big way to stand out in a competitive, low-margin business. Banks can learn from how fuel retailers use loyalty to transform a commoditized service into a relationship-building opportunity.

• Coalition and Cross-Industry Rewards: Fuel loyalty programs frequently extend beyond the pump and recognize that fuel purchases are one touchpoint in a consumer’s day. Many credit card programs already allow converting points to airline miles or other partners. However, banks can take it further by forming coalitions of their own: imagine a bank-led loyalty coalition where a bank’s rewards currency could be earned or spent at a network of retailers, airlines, fuel stations, and more. Loyalty programs for financial services could evolve into lifestyle programs, positioning the bank as the connector of multiple industries.
• Gamification and Tiered Engagement: Fuel retailers have gotten creative to encourage frequent visits. Many gas loyalty apps include games (like digital scratch cards or spin-to-win discounts on your next fill-up). Banks can similarly gamify financial behaviors: awarding points or badges for completing a financial education module, saving a certain amount, or trying a new service. Some innovative fintech apps already use progress bars and challenges for savings goals (a form of gamification).
• Personalized, Data-Driven Offers: Leading fuel loyalty programs have started harnessing data to personalize promotions, and banks can do the same thing. For instance, if a bank notices a customer hasn’t used their credit card in the past month, the app might present a personalized bonus offer (like extra cashback) to rekindle usage. Personalization through AI and analytics is a success factor in fuel retail—tailor rewards to individual financial journeys (e.g., first-time home buyers get double points on mortgage payments for first year, new parents get offers related to education savings, etc.).
• Creating Ecosystems and Lifestyle Benefits Beyond Fuel: Fuel retailers are reinventing themselves as broader service hubs. Many gas station loyalty programs now include convenience store purchases, food, even EV charging, and sustainability rewards. The lesson for banks is to think outside pure finance. Some banks have started offering lifestyle perks in their loyalty programs (like event tickets, dining experiences for points redemption).

The fuel industry proves that even low-margin, transactional businesses can foster loyalty by adding value and fun to each interaction. For banks, the takeaway is to embed loyalty into the fabric of daily life. By partnering widely, banks can ensure their loyalty program remains relevant whenever and wherever the customer spends money.

Bank customer retention can also be improved by adopting the fuel retailers’ mindset of “make every visit rewarding”, which for banks translates to “make every interaction (or transaction) rewarding.” Whether it’s a mortgage payment, a login to check balance, or a swipe of the debit card, look for ways to acknowledge and reward the ongoing customer relationships.

Over time, this consistent positive reinforcement builds habit and preference for the bank, much as drivers will bypass a cheaper gas station to go to one where they accumulate points and perks.

Travel & Hospitality Industry Loyalty Programs vs. Banking Programs

The travel industry has a long history with loyalty programs, often paralleling airlines. Major hotel chains have expansive programs that encourage guests to stay within their brand family. These travel loyalty programs emphasize experiences and customer lifetime value in ways that banks can draw inspiration from. At the same time, the travel sector’s recent challenges highlight what banks should avoid (e.g., devaluing rewards).

• Experience-Driven Rewards: Hotels and hospitality companies know that loyalty is about enhancing the experience. Common hotel loyalty perks include room upgrades, late checkout, complimentary breakfast, or spa credits. This focus on experience over pure transactional rewards is something banks can emulate. For example, a bank might offer its loyal customers free financial planning sessions to elevate the customer’s experience of the bank beyond day-to-day transactions. Notably, experience-driven rewards tap into emotional loyalty: a customer feels appreciated and valued, which strengthens their bond to the brand.
• Personalization and Flexibility in Redemption: Many hotels now let guests earn and spend points not just on stays but on-property spending like dining, spa treatments, even at affiliated vacation rentals. Banks should similarly diversify their loyalty redemption options—including using points to directly offset transactions (like a statement credit), redeeming for experiences (concert tickets, travel packages through bank portals), or donating to causes.
• Holistic View of Customer Value (Share of Wallet): Hotels found they were capturing only about 50% of their guests’ total travel spend on average (compared to around 60% for airlines), according to McKinsey, prompting them to expand loyalty programs to cover a broader range of spending categories. A banking loyalty program can incentivize this: for instance, offering bonus rewards when a customer adds a new product (opens a credit card, starts an investment account) or bundles services (holds a checking and mortgage and brokerage, etc.). This approach also deepens the relationship, making the customer less likely to leave.
• Community and Emotional Connection: The travel industry often fosters a sense of community among loyal members. Banks traditionally haven’t had “communities” around their loyalty programs, but this could be an area of innovation. For example, a bank could host local meet-ups for its small-business customers or run online communities where members of a certain tier can share insights or get insider content (financial tips, exclusive research). It’s a form of customer appreciation that creates a sense that being a loyal banking customer is being part of a club or movement.
• Don’t Devalue Loyalty: Nothing turns a customer off faster than seeing their hard-earned points suddenly lose value or the “goalposts” for rewards shift unfairly—as happened with many travel loyalty programs after the pandemic. So if, for instance, a bank promises that 10,000 points = $100, it shouldn’t stealthily change it to $50 equivalent later. Transparency and consistency build trust. Loyalty programs in the financial services industry must balance cost with reward, but always err on the side of customer-perceived value, which ultimately drives engagement and profitability long-term.

The travel and hospitality sector teaches banks to think beyond transactions and build genuine relationships. This means enriching loyalty programs with experiences, personalization, and a holistic approach to customer needs. Banks can learn to celebrate customers (like hotels celebrating a guest’s 10th stay with a surprise amenity —a bank might celebrate a customer’s birthday with reward points or congratulate a business customer on a company anniversary with bonus services).

Banks should also stay agile and responsive to shifting customer values. As digitally native Gen Z and eco-conscious Millennial consumers grow in influence, loyalty programs must evolve to reflect what matters to them. According to Bain, only 52% of respondents believe their primary bank performs well on ESG efforts—highlighting a clear opportunity for banks to differentiate through more relevant, values-driven loyalty offerings.

Above all, travel shows loyalty is earned through delivering consistent value and positive experiences—a mantra banks should adopt: loyalty is not given, it’s earned by the brand through its actions.

Integrating Cross-Industry Insights: 5 Loyalty Strategy Tips for Banks

1. Use Data to Personalize Loyalty

Tap into your rich first-party data to deliver timely, relevant rewards. Personalization powered by AI boosts engagement and drives behavior, just as seen in retail and fuel sectors.

2. Build a Partner Ecosystem

Extend your loyalty program through strategic partnerships—retailers, fintechs, health tech, and even real estate. Consider becoming the platform behind other brands’ loyalty efforts (Loyalty as a Service).

3. Invest in Seamless Tech Infrastructure

Ensure your loyalty platform supports real-time rewards, digital wallets, omnichannel experiences, and open APIs. Frictionless delivery is key to adoption and customer satisfaction.

4. Measure, Iterate, Improve

Set clear KPIs (like retention and product uptake), monitor partner performance, and update offers regularly. Stay agile, and communicate changes clearly to keep customer trust.

5. Prioritize Long-Term Value Over Short-Term Cost

Think of loyalty as a relationship investment, not a marketing line item. Empower your teams to support it, and design programs that turn everyday banking into meaningful engagement.

Real-World Examples of Successful Bank Loyalty Programs

Nedbank – Greenbacks

Nedbank, one of South Africa’s largest banks, has taken a bold step in redefining customer loyalty with the relaunch of its long-standing Greenbacks program. Developed in partnership with Comarch, this modernized version goes beyond traditional spend-based rewards to recognize a broader range of positive financial behaviors. Customers can now earn Greenbacks by reaching goals like increasing savings, using digital channels, making on-time loan payments, or simply using their Nedbank card regularly. The more goals achieved, the higher the tier—and the faster customers earn, with rewards reaching up to 2% of total spend.

With its flexible, behavior-based model, tiers, and digital-first focus, Greenbacks reflects a broader shift in banking loyalty—where engagement, empowerment, and long-term value drive retention.

Citibank – Citi ThankYou Rewards

Citibank’s loyalty program is a points-based system that stands out for its flexibility and partnership network. Customers earn ThankYou Points through various products (credit card spend, banking activities like opening new accounts or using mortgages), and can redeem points for almost anything: cash back, gift cards, travel, merchandise, or even transfer points to airline frequent-flyer programs.

Customers value the freedom to use points for what matters to them, whether filling up at Shell or booking a flight on Singapore Airlines. Citi’s approach exemplifies aligning a bank program with the successful traits of retail and airline programs (wide choice and partnerships).

Bank of America – Preferred Rewards

Bank of America’s program is a tiered loyalty program that rewards customers based on their total relationship value (combined balances across accounts). Customers in higher tiers enjoy benefits like bonus credit card rewards, higher interest on savings, discounted or free banking services, and ATM fee waivers. This encourages customers to consolidate accounts and investments with BoA to climb tiers.

Since its introduction, Preferred Rewards has been credited with improving bank customer retention and increasing cross-product holding. Customers in Preferred Rewards are significantly more likely to consider BoA for additional products, because the more they bank, the more perks they unlock—a clear demonstration of a customer retention strategy for banks paying off through tiered incentives.

From Transactions to Long-Lasting Trust

Customer loyalty in banking is clearly entering a new era—one shaped by the strategies and successes of other industries. By adapting these insights and leveraging their own unique strengths, banks can create loyalty programs that lead the way.

The ultimate goal is a banking relationship where customers feel continually rewarded and valued, and where banks benefit from stronger loyalty, deeper engagement, and a lasting competitive edge.

The Comarch Loyalty Marketing Platform and our expert support make building that future easier. Explore our loyalty solutions for banks or book a no-obligation consultation. Let’s design a loyalty program tailor-made for your banking business.