The Goal: Drive engagement and spend for neobanks
Neobanks are on a vertical trajectory, with market growth expected to hit $394.6 billion by 2026, up from $18.6 billion in 2019. With unique challenges compared to traditional banks, such as an emerging customer base and limited marketing resources, neobanks must quickly engage customers in order to be top of wallet and drive spend. Partnering with Dosh, a Cardlytics company, to provide customers cash back rewards, neobanks are driving engagement and spend with their customers, leading to measurable growth for these banks.
Cardlytics offers a plug and play software developer kit (SDK) designed for neobanks, with a best-in-class user experience for earning cash back. Since late 2020, seven neobanks have successfully launched and implemented the program with impressive results in top of wallet spend and consumer engagement. This study summarizes the collective consumer behavior and program usage since launch.
Rewards-engaged Consumers Spend More
Based on overall spend, consumers who engage with the rewards program make 18% more purchases at 20% more merchants and spend 12% more each day on average than non-engaged consumers. This translates to around $2,600 of annual spend per customer, which, when multiplied by the total number of bank customers, can be a true driver of revenue for neobanks.
Rewards-Engaged Consumers Shop More
Participating neobank partners see 3x increase in spend and transaction frequency from cardholders who previously transacted less than once a week. Customers already using their card weekly also see a 45% increase in transactions. Once customers earn their first cash back reward, they shop 5% more frequently and spend 8% more per day.
This partnership has been great for us and, more importantly, fantastic for our customers. It’s been truly seamless — easy integration and great ongoing support. Our customers have enjoyed access to a variety of cash back opportunities deposited straight into their Betterment checking accounts.”
Johanna Richardson, VP of Product at Betterment.
What is Driving this Success? A Strategic Loyalty Partner
Best in class user experience:
Cardlytics brings an immersive, data-driven cash back experience directly to financial institution customers. It creates a virtuous cycle where users spend 23% more per transaction and merchants continue to invest in offers to foster loyalty with their customers and acquire new ones. By putting our partners at the center of that cycle they get a leg up in the race to stay top-of-wallet.
Offers from brands customers know and love:
With the most national and local offers available and more than 100,000 places to earn cash back, including a market leading roster of nationally recognized brands, the platform provides the highest quality offers available to ensure increased engagement and top-of-wallet spend.
Turnkey, fast, and inexpensive implementation:
Leveraging Cardlytics provides a quick, plug and play solution without the heavy lift that is required from many implementations. The model has been priced and scaled for neobanks and financial service providers seeking a low cost, quick launch solution; with many partners going live in less than 45 days compared to several months for larger bank programs.
Personalized and Customizable:
Creating a personalized, branded cash back app or web experience is easy. With the most robust set of merchant offers and custom fonts, colors and module organization, partners deliver a custom user experience. The front-end SDK is continually being advanced and refined to drive engagement and optimization for rewards programs.