Using Data to Create Value for All Customers

The scale of BankAmeriDeals, Bank of America’s online and mobile cash back deals program, makes it one of the flagship implementations of merchant-funded rewards (MFR) initiatives. This case study analyses what it takes to implement such a program at a large bank, what can be achieved, and what lessons can be learned.

In the report, Using Data to Create Value for All Customers: A Case Study of Bank of America’s BankAmeriDeals Program, Celent explores how Bank of America has implemented a merchant-funded rewards program. The case study addresses the following topics:

• The genesis of the program: rationale, guiding principles, and vendor selection
• Value proposition
• Technical solution
• Project timeline and program rollout
• Project team and governance
• Results and operational metrics
• Running the program within “business as usual”
• Plans for the future

One key insight of the study is that, from the outset, Bank of America wanted to build something that would be beneficial to all of its customers, both consumers and merchants. Bank of America understands that banks have privileged access to valuable customer data and are custodians of that data responsible for protecting customer privacy. If done correctly, banks can use the data they have to create value for all of their customers, and turn it into a significant business for themselves.

“We appreciate that the scale of Bank of America means that some of the lessons described in this case study will be very relevant to other large banks, while many smaller institutions are unlikely to experience the same challenges,” says Zilvinas Bareisis, Senior Analyst with Celent’s Banking Group and author of the report. “However, we are convinced that all financial institutions considering whether and how to launch an MFR program have much to learn from this case study, irrespective of their size.”

This 32-page report contains 12 figures and one table.