Bank of America, the second largest bank in America, announced on Wednesday that it would begin offering a new rewards program called BankAmeriDeals, allowing customers to earn savings from preferred stores based on spending patterns.
“Big banks are raising fees across the board, and as they're doing so, they're trying to find additional ways to give value to their customers,” Founder and CEO of PerkStreet Financial Dan O'Malley said, according to USNews.com. “They're trying to get people excited about how much they can earn from these programs and try to camouflage the amount that they're also raising in fees at the same time.”
In the new program, offers are displayed on the online banking platform based on where the customer often shops. The customer then chooses a deal, and, using a Bank of America debit or credit card, shops at the merchant that provided the offer, USNews.com reports.
Customers receive verification the next day that the offer has been redeemed and a credit of the discount amount is applied to the customer's account at the end of each month.
Bank of America plans to phase in the program. By mid-February, the program will become available to all Bank of America employees. Though the program is strictly offered online, the bank plans to launch a mobile app version of BankAmeriDeals, according to American Banker.
O'Malley said that programs like this will become more commonplace as banks raise fees to recoup profit losses associated with new federal regulations.