BillShrink Study Finds 94% of Online Bank Users Want In-Statement Savings and Rewards

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New customer loyalty programs are changing the online banking experience, driving customers to the banks and cards that offer personalized bill analysis and in-statement rewards

BillShrink, the creator of the popular money-saving search engine, finds overwhelming customer interest in initial tests of StatementRewards℠, a savings and rewards platform integrated directly into online bank statements. A recent survey reveals that 94% of online bankers would use a credit/debit card that offered them in-statement rewards and money-saving recommendations over a card that did not. Building upon the success of personal finance tools and daily deals, new innovations like BillShrink’s StatementRewards are finding broad appeal with bank customers, financial institutions and merchants supplying loyalty rewards.

StatementRewards is expected to boost customer loyalty and be a new revenue source for banks as people take advantage of in-statement loyalty offers like 30% off at a large mass-merchandise retailer or $50 worth of house wares for $40 at a specialty retailer. Additionally, with a unique personalized bill analysis feature that examines users’ wireless, TV service and gas payments, StatementRewards’ users find an average of $1000 in savings annually by “right sizing” their bills. Banks, in turn, can gain an average of $5000 in additional spend from customers who shift their bill payments to their debit or credit cards.

The new platform arrives at a critical time – the banking industry is projected to lose more than $30 billion as a result of the legislative reforms from The Durbin Amendment, Regulation E and the CARD Act. As a result of the impact of this legislation on bank revenue, banks are actively seeking new channels for retention and customer-friendly profits. Banks believe the customer savings offered through in-statement rewards and personalized bill analysis will boost customer loyalty and increase card usage.

“Online banking is the new frontier for merchant loyalty programs, particularly as more people begin to manage their accounts online,” said Ron Shevlin, senior analyst at Aite. “We see considerable momentum from banks adopting in-statement, merchant-funded rewards in an effort to retain customers and to increase spend through the bank’s own channels.”

For the rewards, banks are tapping into BillShrink’s vast merchant network -- 95% of the nation’s top 100 retailers -- to present their customers with convenient access to personalized rewards and savings from the stores and service providers they already enjoy.

“BillShrink continually develops new ways to save people money,” said Schwark Satyavolu, co-founder and CEO of BillShrink. “We addressed the consumer demand for daily deals and improved upon the experience by delivering in-statement personalized savings and rewards based upon where people already shop. We’ve found a way to eliminate unwanted offers and reduce risk by not requiring people to hand over credit card numbers to get savings benefits. StatementRewards is a product that banks can securely give to millions of people within the trusted online banking environment and merchants see it as an improved way to build customer loyalty.”

BillShrink’s study reveals consumer appeal for in-statement rewards and is summarized in a new whitepaper “The Inside Track to Increased Loyalty and Spending: Why In-Statement Rewards and Bill Analysis Are Transforming the Online Banking Experience,” which is available on BillShrink’s site (http://www.billshrink.com/corp/press/sr-regform/). A recent survey of BillShrink users found that:

Increased “share of wallet” for cards that offer in-statement rewards

  •     94% of people would use a card that offered them in-statement rewards and money-saving recommendations over a card that did not.
  •     Over 76% of consumers would consider applying for a new card or bank if their current provider did not offer loyalty rewards in their statements.

People want personalized money-saving advice on how to save money on their largest bills

  •     Nearly 90% of people indicated that they would like in-statement personalized bill analysis and money-saving recommendations on large monthly bills (i.e. wireless, TV, gas).

Merchants will see an increase in brand loyalty from their customers

  •     People expect to increase their yearly visits to merchants that offer in-statement loyalty rewards by 40%, and 90% say their opinion of the merchants who reward them with special discounts would improve.

About BillShrink
Since BillShrink’s launch in 2008, the company has helped 1.5 million Americans save more than $1 billion by delivering personalized money-saving recommendations on their most common household bills.
In an era when eight out of ten people overpay on their everyday bills, BillShrink sorts through millions of products and services – a billion cable and satellite packages, 10 million cell phone plan combinations and 150,000 gas stations – to provide unbiased recommendations so users can get exactly what they need at the best price.

With the launch of StatementRewards℠, BillShrink brings the power and breadth of its money-saving platform directly to users within their online bank statements. BillShrink is working with the country’s leading merchants and financial institutions so that users can now receive and customize money-saving offers from their favorite merchants and service providers directly within their credit card statement.

BillShrink was listed among the “Top 20 Best Money Websites” by Money Magazine and named one of the “Best Web Sites” by Kiplinger’s. The company has been featured in the country’s leading news sources including The Wall Street Journal, The New York Times, American Banker, Consumer Reports, Fortune, The Dr. Oz Show, The Today Show, CNN, ABC and CBS. The company publishes the popular “Shrinkage is Good” blog, which features commentary on the latest economic news and savings tips. BillShrink is headquartered in Redwood City, California. For more information, please visit http://www.billshrink.com/corp.

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Matt Mirandi

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