Bank of America’s Unique Approach to Loyalty Rewards Translates Into Record Client Satisfaction and Retention

September 27, 2019 at 9:00 AM Eastern

Bank of America is celebrating five years of its industry-leading loyalty program, Preferred Rewards, which rewards members with perks and benefits across their entire banking relationship. This unique approach to rewards has helped generate record levels of client satisfaction and retention with members. Members report more than 85 percent satisfaction with their banking relationship, and have a retention rate of nearly 99 percent. In addition, 8 out of 10 members say they are “highly likely” to recommend the bank to friends and family.

Preferred Rewards is the first no-fee program of its kind that recognizes and rewards clients for choosing to do more across their Bank of America and Merrill accounts. The loyalty program’s unique relationship-based approach provides members extensive rewards and benefits across their deposit accounts, investments, credit cards, mortgages and auto loans, along with exclusive discounts and experiences.

“Showing our clients how much we value their relationship has always been our priority, and Preferred Rewards enables us to take this a step further by offering our members a loyalty program that provides tangible benefits for their entire banking and investing relationship,” said David Tyrie, Bank of America head of Advanced Solutions and Digital Banking. “Looking forward, we are excited to continue offering best-in-class benefits while introducing our members to exclusive experiences and new types of rewards.”

Preferred Rewards enrollment reaches 6 million

Since its launch in September 2014, the Preferred Rewards program has enrolled approximately 6 million members, holding $475 billion in assets – which is equivalent to the fourth-largest U.S. retail bank by deposits. Throughout the past five years, members have enjoyed program benefits including credit card rewards bonuses, commission-free stock and ETF trades with Merrill Edge Self-Directed, discounts on home and auto loans, and monthly maintenance fee waivers.

New benefits in 2019

This year, Bank of America expanded the Preferred Rewards program to offer even more benefits and rewards to members for everyday banking and investing, including:

  • Discounts of up to 0.15 percent on the 0.85 percent annual fee for Merrill Guided Investing with an Advisor, for a rate as low as 0.70 percent. This new offering pairs the digital advice solution of Merrill Guided Investing with the optional support of a dedicated Merrill Financial Solutions Advisor (FSA).
  • Discounts of up to 0.15 percent on the 0.45 percent annual fee for Merrill Guided Investing, for a rate as low as 0.30 percent.
  • Up to 10 commission-free stock and ETF trades through Merrill Edge Self Directed for Preferred Rewards members in the Gold Tier, a benefit that was previously only available to members in the higher tiers of the program.
  • Discounts of up to 2 percent on the current foreign currency exchange rate, plus free standard shipping for orders placed online.

Benefits for small businesses and investors

Last year, Bank of America launched Preferred Rewards for Business to help entrepreneurs grow their businesses. The program’s wide range of benefits has driven enrollment to 385,000 members, holding $67 billion in assets, with nearly half adding a new product to their banking relationship. Preferred Rewards for Business was recognized this year by Barlow Research with a Monarch Innovation Award in the “Business Banking Most Innovative Product” category.

Merrill clients also have access to Preferred Rewards for Wealth Management, providing them banking benefits, solutions and services.

High-tech and high-touch rewards experiences

Beginning in 2019, Erica, the award-winning Bank of America artificial intelligence (AI)-driven virtual assistant, now notifies clients when they become eligible to enroll in Preferred Rewards. Erica highlights the benefits that are available and guides clients through the simple enrollment process with just a few clicks.

Beyond the benefits offered for Preferred Rewards members, Bank of America offers other rewards opportunities to help clients throughout their financial journey. My Rewards, a centralized dashboard available online and in the mobile app, allows clients to track, manage and redeem multiple Bank of America consumer rewards programs in one convenient place. Over 13 million unique users have benefited from the My Rewards experience in the first year alone.

For more information about Bank of America Preferred Rewards, click here.

Bank of America

Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 66 million consumer and small business clients with approximately 4,300 retail financial centers, including approximately 2,200 lending centers, 2,400 financial centers with a Consumer Investment Financial Solutions Advisor and 1,700 business centers; approximately 16,600 ATMs; and award-winning digital banking with more than 37 million active users, including approximately 28 million mobile users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

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Reporters May Contact:
Betty Riess, Bank of America
Phone: 1.415.913.4416