Loyalty and rewards

TAB Bank's debit account, which rewards users with partial stock shares, is boosting the company's appeal among consumers who are younger, tech-savvy and underbanked.

A group of unions filed a complaint against Starbucks Corp. with the U.S. Securities and Exchange Commission, asking the agency to investigate how the coffee chain accounts for unused money left on customers' stored-value cards and accounts.

Financial institutions have a solid track record of keeping customers for the long haul, but technology firms, fintechs and challenger banks are gaining ground on the incumbents.

Coinbase Global said it's being probed by the Securities and Exchange Commission over its staking programs, which allow users to earn rewards for holding certain cryptocurrencies.

As competition tightens in the buy now/pay later arena, fintechs including Klarna, Afterpay and Zilch are upgrading perks to keep consumers from straying to their rivals.

Issuers that offer cash rewards can benefit from consumer anxiety over rising prices for gas and groceries, but have to find ways to make sure their own costs don't rise in tandem.

Inflation isn't only driving up travel costs — a key category for credit card spending — it's making shoppers more selective about how they earn and redeem loyalty points for products hit hardest by price increases.

Bank of America is rolling out a host of travel sweeteners to ultra-high-net-worth customers. It’s partnered with the luxury-travel firm Indagare to offer the experiences to members with more than $10 million in their accounts.

Star Alliance — the largest of the three global airline groups — is planning to offer a co-branded credit card that will allow cardholders to redeem points across all 26 members.

Vanguard Group will give some American Express credit card customers access to financial advice, a business the fund manager is working to build up.

To increase its share of global card spending through gig-economy fintechs and startups, Amex is extending its rewards through a partnership with digital issuing vendor i2c.

Wells Fargo will start letting customers earn points and miles on their rent payments as the banking giant deepens its push into credit cards. 

Klarna Bank is adding the option for customers to pay immediately at checkout in nine new markets while expanding its rewards program, as it targets becoming a one-stop lender for consumers.

As more consumers shop and bank online, Texas Capital and its rivals are competing for market share with concepts such as an American Airlines savings account that offers miles instead of interest and one that pays a 0.70% annual percentage yield, beating the national average of 0.06%.

Working with Bumped, TAB Bank is offering customers “cash back” as fractional shares of popular retailers.

Bank of America is turning to private jets and exotic cars to compete with American Express and JPMorgan Chase and lure big spenders to its credit cards.

Americans are looking for immediate ways to offset rising costs, rather than saving points for future travel. Cash rewards, which were already growing in popularity, are now even more coveted.

Bilt Rewards, which offers a loyalty program and credit card that converts rent into reward points, raised $60 million from investors including Mastercard and Wells Fargo, giving the startup a $350 million valuation.

The revenue that banks earn from these loyalty programs provides a substantial offset to potentially shrinking interchange fees.

The creators hope CU Offers, which lists discounts at local and national businesses, will attract new members and strengthen ties with existing ones. But observers are skeptical that it will drive real growth or inspire frequent use.