The second largest bank in the U.S. rolled out a targeted, discount coupon service to their employees in Nevada and the Carolinas based on the analysis of their spending patterns. Bank of America has partnered with Cardlytics, an innovative company that provides banking rewards solutions that allow merchants to target customers based on what they actually purchase.
While other banks like Chase already offer this type of discount service, Bank of America’s program will be the biggest name to enter the competitive field of online discounts. By mid-February all of the estimated 275,000 employees will have access to the targeted online discounts but no date has been announced for their customers to sign on.
Here’s how Bank AmeriDealsworks!
Unlike Groupon, which requires their customers to sign up for coupons by email, BankAmeriDeals members will log in to the bank’s website where they’ll find various coupon offers based on their spending habits embedded in their statement under a separate tab. Customers can choose to receive alerts about offers and how much money they have saved. They also can opt out of the service. If they accept a discount it will be tied to their Bank of America credit or debit card and can only be redeemed with a Bank of America debit or credit card. There will be no discount on the purchase price but instead the coupon value will be refunded back to the Bank of America account in the next billing cycle.
“As part of the service, the bank will not share customer data with third parties, including retailers,” said David Godsman, the bank’s online and mobile solutions executive. The service will highlight the bank's ability to track consumer spending, he acknowledged, but he said the bank hopes the relevance of the deals outweighs any customer concerns.
The program will be paid for by the merchants making the discount offers, not by Bank of America and is a way for the bank to recoup losses from the reduction or elimination of debit card reward programs. The program is designed to make more relevant offers available to customers than daily deal email blasts or other coupon programs with up to twenty offers per month from discount stores, fast food and local restaurants. Bank customers also have the option can opt out.