Bucking the trend of removing card rewards program that was spurred by the Durbin Amendment, KeyBank has launched a new expansion of its rewards program that will reward customers for using a variety of services from debit card payments to automated bill paying.
On Sept. 17, KeyBank’s Relationship Rewards became the bank’s exclusive customer rewards program and replaced the existing KeyBank Rewards and Key Miles programs.
"Above all else, Key is a relationship bank, and we want our customers to view Key as their primary bank," Bill Koehler, the president of Key Community Banking, said. "To fulfill that role, we offer the product variety and flexibility to meet a wide range of our customers' needs, and we will now reward our best customers for using those services. KeyBank Relationship Rewards focuses on the total relationship rather than just a single activity such as debit card spending. This differentiates Key from many of our competitors who are scaling back their rewards programs."
After the Durbin Amendment passed, the American Bankers Association polled banks for reactionary strategy plans. Eighty-one percent of banks said that they planned on cutting their debit card rewards programs as well as adding new fees.
KeyBank has taken a different approach by increasing its debit card rewards programs and rolling out new checking account flexibility options.
Members who were enrolled in Key Miles and KeyBank Rewards have been automatically upgraded to the new Relationships Rewards program. Nonmembers must enroll at a local branch.
"The KeyBank Relationship Rewards program reflects our commitment to listen to customers and take their feedback into account in developing products and services that best match their changing banking needs," Koehler said. "Our enhanced rewards program will allow us to provide additional value and sharpen our focus on serving as our customers' primary bank."