WARMINSTER, PA — CORA Loyalty is urging financial institutions to overhaul how they reward customers, warning that traditional, card-centric loyalty programs are becoming harder to fund and less effective as competition intensifies heading into 2026.
The firm said loyalty programs built largely on interchange revenue are under growing pressure worldwide, squeezing banks’ ability to sustain generous rewards. At the same time, product-specific incentives—such as debit or credit card rewards—often fail to deliver durable returns or secure top-of-wallet status as consumers spread spending across multiple providers.
Industry leaders, CORA Loyalty said, are shifting toward enterprise loyalty strategies that recognize the entire banking relationship rather than a single transaction. That broader approach rewards customers for maintaining checking accounts, paying account fees, using multiple payment products, transacting consistently, and sustaining long-term relationships. The strategy applies not only to retail clients, but also to small and medium-sized businesses and commercial customers.
The objective, the company said, is to drive outcomes that extend beyond card spend, including growing deposits, expanding treasury management adoption, and strengthening overall relationships across the institution.
CORA Loyalty also said loyalty strategies should extend beyond customers. Employees and strategic vendors can be incorporated into enterprise programs to amplify engagement and impact across the banking ecosystem.
As institutions struggle to maintain competitive point issuance, the firm said partner-funded rewards are becoming increasingly critical. Airlines, retailers, grocery chains, gas stations, and food delivery services are already subsidizing rewards, helping banks offer benefits tied to everyday purchases while improving return on investment and making rewards feel more immediate and tangible.
“Enterprise loyalty is about recognizing the whole relationship, not just rewarding a single transaction,” said Beth McCoy, chief executive officer of CORA Loyalty. She said financial institutions that succeed will be those that leverage their central position across a broad ecosystem, using partner-funded rewards to sustain engagement while deepening deposits, expanding services, and reinforcing long-term relationships.
CORA Loyalty said 2026 is shaping up to be a pivotal year, as banks that cling to narrow, product-based rewards risk falling behind competitors that adopt relationship-driven loyalty strategies built for scale and sustainability.
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