Digital Banking

Bank of America embraces loyalty strategy through rewards

Bank of America is addressing customer retention with a multifaceted strategy that rewards loyalty and offers options for payments and fraud monitoring.

Photo: Bruno Coelho - stock.adobe.com

July 24, 2026 by Bradley Cooper — Editor, Connect Media

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Banks often struggle with customer retention. The average retention rate for most banks is 75%, according to ablog from Experian. Banks lose these quarter of their customers for many reasons, ranging from bad customer experiences to better offers at other banks.

In order to keep customers, banks need to give customers a reason to stay loyal. Bank of America, for example, is taking a multi faceted approach by offering multiple ways for customers to earn rewards and manage their accounts.

It added Refer-a-Friend for referral bonuses, Custom Pay Plan to allow customers to pay on their own terms, My Credit for credit profile updates and fraud and identity monitoring. These tools are built to work together to deal with real customer problems. For example, Custom Pay Plans deals with high interest rates via fixed monthly fee and a flexible payment terms.

ATM Marketplace spoke with Mary Hines Droesch, head of Consumer and Small Business Products and Analytics at Bank of America, in an email interview to learn about how the bank is retaining customers through these revamped tools.

Q: What sort of bonuses can clients receive for Refer-a-Friend?

Droesch: Cardholders with a Bank of America Customized Cash Rewards, Unlimited Cash Rewards or Travel Rewards credit card can earn up to $100 in bonus cash rewards or 10,000 points for each referred friend and family member who opens an account with us — up to $500 or 50,000 points per year. We plan to expand this program throughout 2026, so we can extend these bonuses to even more clients.

Q: What payment options are available for Custom Pay Plan?

Droesch: Custom Pay Plan gives cardholders exactly what they want: transparency and control. Eligible cardholders can now convert qualifying purchases into structured payment plans that work for them. Clients can choose repayment terms ranging from three to 18 months, with a fixed monthly fee instead of traditional interest. And because rewards are earned at the time of purchase, clients don't have to trade flexibility for value.

Q: What ways does My Credit empower customers to manage credit without impacting their score?

Droesch: Your credit profile touches nearly every major financial decision you make — which makes accessing and understanding your credit information critical. My Credit is a free, easy-to-use tool that gives clients a comprehensive view of their credit health without affecting their credit score.

Through the feature, clients can view their FICO Score, access their credit report and receive personalized insights to better understand factors that might be influencing their credit standing. The tool also sends clients alerts for changes to their FICO Score, flags suspicious activity and is integrated with our AI-driven virtual financial assistant, Erica, allowing clients to easily access their credit profile.

Q: What sort of fraud and identity monitoring tools are now available for Rewards members?

Droesch: We take a layered approach to protecting our clients. All of our BofA Rewards members who've enrolled in My Credit get access to our enhanced fraud and identity monitoring features, including dark web monitoring, Social Security Number monitoring, full-service identity restoration support and more. Beyond these added benefits for BofA Rewards members, we protect our clients every day by using more than 50 AI-enabled fraud detection models to spot fraudulent activity. We also offer clients our enhanced Security Center, which allows them to manage online and mobile banking security options and provides them with security features, tools, and fraud and scam education.

Q: How will these features improve the overall banking experience?

Droesch:These tools are designed to give clients greater visibility into their financial health and more control over how they manage their money, all within our digital experience that they already use. Refer-a-Friend rewards clients for recommending the products they already use and trust. Custom Pay Plan allows clients to manage payments with greater control and flexibility. And My Credit puts credit health front and center in a simple, accessible way. Together with BofA Rewards, these new tools reflect our commitment to making every interaction with Bank of America more valuable.

Q: What has early customer feedback been like?

Droesch: Clients are already responding positively to these new tools, which is really rewarding to see. We developed these tools with their needs in mind, so we're encouraged by the great response so far. We remain committed to continually improving the client experience and providing new solutions based on their feedback.

Q: Anything else you'd like to add?

Droesch: These announcements not only reflect our continued investment in digital improvements and client empowerment, but importantly, these tools make financial wellness more achievable for clients. With the recent launch of BofA Rewards and these new tools, we're delivering a more personalized and rewarding experience for clients across their entire banking relationship with us. We're excited about what's ahead and committed to giving our clients the tools they need to make the most of their financial lives.

About Bradley Cooper

Bradley Cooper is an experienced editor for Connect Media. He has written across a wide range of beats, ranging from food to digital signage to banking, and is the current editor of ATM Marketplace and Food Truck Operator. His background is in information technology, advertising, and writing. When he’s not crafting a story, you can find him going for a run or spending time with his wife and three sons.

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