Banks embrace rewards, personalized tools for small businesses

Rewards and loyalty programs are becoming a highly important piece of every industry, not just retail. Banks are also getting involved in loyalty and rewards programs in a deeper way.

For example, earlier this year, Member Access Processing, a debit, credit, ATM and mobile processing platform for credit unions, added apliFI Loyalty Solution's Real Time Rewards Suite for credit unions to allow cardholders to redeem reward's points at checkout, according to a story on Rewards That Matter.

Bank of America also held its More Rewards Day on Nov. 9, which gave customers the option to earn bonus rewards of 2% cash back and two points per $1 spent on top of their regular rewards.

Small business rewards

Another bank is also embracing rewards in a big way, but not just for consumers. This bank is including small businesses in its programs, a segment that often feels left out by the banking world.

American Express recently introduced its business checking accounts for all eligible small businesses, with no monthly fees, and the ability to use Membership Rewards for travel and direct deposits, according to a press release. First launched in October 2021 for consumers, the bank has now expanded access to the product to small businesses.

"This is the first business banking product offered by American Express that allows customers to earn and redeem Membership Rewards points," Brett Sussman, VP of American Express for business and banking, said in an email interview. American Express is committed to backing small businesses with a flexible membership rewards program. Our business checking product also offers an on-the-go banking tool with no monthly fees, the ability to earn 1.30% APY on balances up to $500,000, access to 24/7 support, the ability to make mobile check deposits and the ability to pay vendors and bills, among other benefits.

Consumer tools for small businesses

Sussman said this account offers other benefits to small businesses besides rewards, including:

• Bill payment.
• Mobile check deposits.
• Ability to link with QuickBooks.

This isn't the only service American Express is offering small businesses. It also provides a Business Blueprint to provide cash-flow guidance, which is a major concern for small businesses.

"In our inaugural Small Business Financial Confidence Report, we found 32% of small business owners surveyed wish they had more guidance on cash flow and 31% said they want more guidance on managing expenses. Small businesses are actively seeking out banks that take the time to provide greater financial guidance and cash-flow education," Sussman said. "In response to this desire for greater guidance, American Express created American Express Business Blueprint, a fully digital cash-flow management platform that's accessible for free to any U.S. small business. Designed for small businesses, Business Blueprint offers 24/7 cash flow analytics to help businesses make more confident business decisions and offers a suite of products, including American Express Business Line of Credit and American Express Business Checking."

By providing a traditional consumer product for small businesses, banks can also create a more hospitable environment for small businesses. As Marbue Brown, founder of The Customer Obsession Advantage, pointed out in a past story on ATM Marketplace, banks can make a big impact with small businesses by understanding both its current financial situation and providing personal service akin to that given to a customer.

In the story, Brown gave a variety of other ways banks can make banking better for small businesses, including, "personalizing touch points across all channels. Every time a customer [small business] is authenticated, they should be greeted by name whether by a live employee or by digital content. The banker, contact center agent or digital workflow should demonstrate awareness of recent transactions, especially transactions or inquiries (that) were started but not completed in other channels. The interaction should take into account personal information already known about the customer to tailor the experience to the customer's needs with advice, tips or good wishes that will resonate with the customer," Brown said in an email interview. "Upon completion of the interaction, the customer should be genuinely thanked for their business and sent off with a farewell that makes them feel the bank (and its employees) were glad for their visit and look forward to the next one."

To learn more about how rewards programs are impacting the banking, retail, restaurant and other markets, click here to subscribe to Rewards that Matter.