When Desert Financial Credit Union first rolled out its Relationship Rewards program about a decade ago, the new perks and benefits were a hit with many of its members. Qualifying customers enjoyed discounts on loans, ATM reimbursements and — best of all — a cash bonus at the end of the year.
But something was missing, customers said. The program didn’t reward them for how long they had been with the credit union.
“They felt that we should reward them for their loyalty, not just what they have with us today,” says Tyler Woodward, chief strategy officer at Desert Financial, Arizona’s largest credit union.
Like many banking rewards programs, Desert Financial’s awarded customers with points for high balances, frequent transactions and having multiple products such as mortgages or auto loans. Many of its longtime customers had once done all of these things with the credit union, even if their banking habits weren’t as active anymore.
“It’s not that they didn’t want to borrow from us; it’s that they didn’t have a need anymore,” Woodward says. “Some of them were past their prime borrowing years. So they had loans in the past they had paid off. We wanted to reward them not just for what they had today but for how they had helped us get to where we are.”
So the credit union adjusted its system, adding loyalty points for members who’d been there for at least 20 years. Nearly 22% of its members have been with Desert Financial for 20 years or more.
In a world where financial institutions are regularly dreaming up creative new rewards and incentives to lure and keep customers, this token of appreciation for longevity is relatively uncommon, at least among America’s larger banks.
And as more online banks and fintechs join an increasingly competitive banking landscape, the average customer may reasonably wonder: Is there any reason to actually stay at my bank?
[See: Best Credit Unions]
From Courtship to ‘You Don’t Even Know Me Anymore’
If you can remember back to when you initially opened your bank account, you might recall an enticing offer that reeled you in. Perhaps it was a $300 signup bonus. Or maybe a flashy high-yield savings interest rate.
In fact, 80% of people say interest rates are an important factor in choosing a bank, according to Accenture’s Banking Consumer Study 2025, which polled nearly 50,000 banking customers and focused on how banks can build loyalty. However, the study also found that 53% of customers don’t know the interest rate they are earning on their savings account. And those that do know their rate said it would take a significantly higher rate to convince them to switch to another bank.
This partially explains a large group of American consumers that the study refers to as “lazy loyalists.” Once upon a time, they chose a bank, often because of an appealing offer, and now they remain with that same bank for little reason other than it’s a hassle to switch. Banks understand this, and they pour substantial resources into obtaining new customers. But this dynamic can also “lull a bank into a false sense of safety,” the study warns.
“There’s an incredible amount of energy that goes into acquisition, but then people become fairly lazy,” says Michael Abbott, global banking and capital markets lead at Accenture, who is one of the authors of the report. “The question is, will anything wake up those sleeping giants?”
While people may not necessarily break up with their bank, they’re certainly willing to “cheat” on it, Abbott says. He says two-thirds of consumers hold accounts at more than one bank.
So what should banks be doing to encourage stronger loyalty among their customers? They could start by showing customers they know them, Abbott says.
He says banks often fail in this area with little things. For example, when a customer calls in, they shouldn’t be asked to press 1 for English or 2 for Spanish — the bank should know the customer’s preferred language. Chatbots, which perhaps unsurprisingly get low satisfaction scores on Accenture’s survey, should remember you rather than functioning as essentially an FAQ section. And banks should send you offers that are tailored to your needs, not just any product the bank is trying to sell.
Too often, customers feel like they’re starting over every time they log onto a bank’s website or call into a branch, he says.
“It’s not just about rewarding,” says Abbott. “It’s about remembering, connecting the experiences, reassuring them, helping them, listening to them, returning the authority and rewarding them. It’s about doing what a branch manager did 30 years ago, but digitally.”
By doing so, Abbott says, banks can turn lazy loyalists into advocates who will tell others about their positive experiences with their bank.
[Read: Best Savings Accounts.]
Rewards and Personalization
Large U.S. banks don’t typically offer rewards specifically for longtime customers, preferring instead to incentivize frequent transactions or high balances. Among the five largest banks in the U.S. (JPMorgan Chase, Bank of America, Citibank, Wells Fargo and U.S. Bank), none directly rewards loyalty, or the length of time a customer has been with the bank. However, some are finding success with loyalty programs that cater to customers’ personal interests.
“Our strategy to encourage loyalty among our clients is twofold,” says John Sellers, head of loyalty and rewards at Bank of America. “Improve the customer experience at every touchpoint and continue offering innovative and experiential rewards based on clients’ priorities.”
He points to Bank of America’s partnership with Starbucks — where customers can earn cash back for Starbucks purchases and bonus points toward free items — as an example of one of the bank’s recent successful initiatives aimed at boosting loyalty. The BankAmeriDeals program, which is accessible for both credit and debit card holders and offers discounts on participating brands, is another way the bank rewards its customers, he says.
Over the past five years, Bank of America has added 3.5 million Preferred Rewards customers, a 46% increase.
“Our rewards program continues to grow even as we see a shift in clients doing most of their banking digitally,” says Sellers. Some smaller banks and credit unions have developed systems for rewarding longtime customers.
Southern California-based Nuvision Credit Union allows you to lock in your rewards benefits, so once you’ve reached a high rewards status, you stay at that tier for as long as you’re a member, regardless of how much banking you do. Desert Financial Credit Union’s Woodward says that in addition to its rewards program, the credit union also typically will give established members favorable deals.
“An engaged member is more likely to get approved for a loan and they’re more likely to get a more beneficial rate,” Woodward says.
Woodward says that although Desert Financial’s members appreciate the rewards program, it’s ultimately the personal relationships that not only keep customers around, but also encourage them to help recruit new ones.
“We think that’s what drives long-term loyalty and success for us,” Woodward says. “Those stories of members that know that they could maybe get a half point lower on their loan somewhere else but they’re not going to because they trust us and they know that we’re going to take care of them. Then those members in turn go and tell their friends, and that’s what drives a lot of our growth.”
More from U.S. News
Is This the End of Paper Checks?
Should You Even Bother Making a Complaint to the CFPB?
What the Capital One-Discover Merger Means for Your Bank Account
Banks Love Your Loyalty ? Do They Actually Reward You for It? originally appeared on usnews.com
