Using Data to Create Value for All Customers

A Case Study of Bank of America’s BankAmeriDeals Program
by Zilvinas Bareisis, June 14, 2013
Case Studies
Global

Abstract

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.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Introduction

3

A Brief Primer on Merchant-Funded Rewards

5

BankAmeriDeals Program Genesis

7

Value Proposition

9

 

Consumer Enrollment and Scope

10

 

Merchant Enrollment and Offer Types

11

 

Offer Delivery

13

 

Offer Redemption

15

Technical Solution

17

 

Overview of Cardlytics Solution

17

 

Implementing Cardlytics Program at Bank of America

18

Implementing the Program

20

 

Timeline

20

 

Key Workstreams, Project Team, and Governance

21

The Program Today and Tomorrow

23

 

Results So Far

23

 

Running the Program

24

 

Looking Ahead

25

Conclusions

26

Leveraging Celent’s Expertise

27

 

Analyst Access

27

 

Support for Financial Institutions

27

 

Support for Vendors

27

Related Celent Research

28

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