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#1666301 - 02/16/12 05:29 PM Customer Rewards
Banker27 Offline
100 Club
Joined: Nov 2007
Posts: 114
I'm creating a risk assessment for the Relationship Rewards product. Does anyone have experience with this product or ideas of risks involved. Any guidance would be helpful too!

This program creates targeted cash and refund based reward programs and interest incentives based on customer relationship. Products and rewards can be established to support any number of customer and account characterisitcs. Rewards can include interest rate adjustments, cash, service charge refunds, transaction based refunds, ATM surcharge rebates and points that can be exchanged for cash.

Thanks!!

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Risk Management
#1666393 - 02/16/12 07:10 PM Re: Customer Rewards Banker27
Reads Regs Offline
Diamond Poster
Joined: Nov 2004
Posts: 2,307
Did you see the rewards checking discussion in this thread ?
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Opinions expressed are my own and not necessarily those of my employer. They are not legal advice.

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#1666822 - 02/17/12 03:00 PM Re: Customer Rewards Banker27
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
One of the most problematic features of many such programs is that some of their "benefits" have to be claimed by the customer. For example, if a program offers fee-free cashier's checks to customers who maintain a qualifying relationship balance, it's OK if the bank rep selling the cashier's check can always determine whether a customer is qualified and automatically waives the fee for qualified customers. It's not OK if the customer has to remind the rep that he or she is entitled to the benefit.

I do encourage you to read through the thread that Reads Regs linked to. It mentions several of the pitfalls of rewards programs.
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

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