Dive Brief:

• PNC is rolling out a new program designed to reward customers for keeping more money at the bank, the lender said Tuesday. 
• All retail customers receive benefits, but clients who maintain a 90-day average balance of $25,000, $100,000, or $500,000 across deposit and investment accounts at PNC are able to enroll in silver, gold and platinum tiers, respectively.
• Perks include enhanced credit card rewards, cash rewards on some lending services and higher savings rates, the Pittsburgh-based super-regional said. The program is designed to be a complement to the bank’s recent addition of services for premier clients, said Victoria Dravneek, head of loyalty strategy and platforms at PNC.

Dive Insight:

In the fight for primacy, a number of lenders have bolstered efforts to deepen customer relationships. Bank of America plans to launch a new rewards program in May, expanding the pool of customers who receive benefits and incentivizing them to do more with the bank. And last year, Wells Fargo rolled out enhanced benefits for its premier checking clients, to entice them to keep more of their money at the bank. 

PNC spent about two and a half years developing the program, said Dravneek, who helped build Bank of America’s preferred rewards program and led strategy for it prior to joining PNC. 

Immediately, about 20% of the bank’s clients will qualify for one of the select tiers; of the remaining 80%, most have funds elsewhere that would enable them to qualify for one of those tiers if they move money to PNC, “and we're betting some of them will do that,” Dravneek said. “Our ability to deepen with the clients we already have, there's huge opportunity there.”

After piloting the program with employees last year, PNC introduced it to customers in the Chicago area in February. That allowed the bank to collect feedback and tweak the program, which the lender has been slowly rolling out in certain markets. This week, the bank launched the program for customers in Dallas-Forth Worth, Florida and the Philadelphia area this week, Dravneek said.  

“We’re doing something that’s more like loyalty outside of financial services, where it’s completely client-centric,” she said. “Whether you have $0 with us or a million dollars with us in the retail space, PNC has something for you.”

The rewards program offers a tangible look at the benefits retail customers receive from the bank, and how they can get more, Dravneek said.

The bank’s research repeatedly showed “clients want to feel valued, and they want to see that tangible value,” she said.

Program enrollment is free and customers are automatically advanced to their next eligible tier, the bank said. Military members and their families automatically qualify for the silver tier, Dravneek said. Customers in the gold and platinum tiers can also access PNC’s Priority or Concierge Care Center. 

“PNC TotalRewards is developed around the idea of building a true partnership with our clients,” Alex Overstrom, PNC’s head of retail banking, said in a statement. “When someone chooses PNC, we want them to feel the full value of that relationship. Not only in exceptional service and hospitality, but also in the meaningful financial benefits that come from building a relationship at PNC.”

Under the program, customers will see a boost in their savings rate -- ranging from 10% at the silver tier to 25% at platinum. Likewise, the program offers credit card bonuses ranging from 5% for silver members to 35% for platinum, according to the bank’s website. The program also offers wealth management perks and rewards and discounts on auto or home equity loans.    

While loyalty in banking has historically been focused on credit cards, financial institutions are embracing rewards programs because they improve customer relationships, particularly as banking product sets and capabilities have become commoditized, Dravneek said. “All of the larger financial institutions, a lot of smaller financial institutions, are going in this direction.”

PNC’s rewards program paired with its hospitality focus can set the bank apart, Dravneek said. “I do look at the other programs that are out there, and I believe our benefits are comparable in all cases; in some cases, far better,” she said.