November 15, 2006: MasterCard Worldwide is launching a rewards program to help banks better leverage customer relationships and increase customer loyalty based on the entire banking relationship. The new program creates opportunities to reach new levels of personalization through rewards that meet specific customer interests. It also enables banks to roll multiple lines of products into one rewards account (helping to deepen relationships), to build loyalty programs unique to their brands, and to cross-sell retail bank and credit products more effectively.

"Financial institutions are looking for ways to enhance cross-sell and retention efforts, and an innovative loyalty program like MasterCard's relationship rewards is a critical element of this strategy," says Patricia Preston, Group Head, Debit Product Management Americas, MasterCard Worldwide. "By offering relationship-based rewards, MasterCard helps our customers develop programs that are more relevant to the varied interests and preferences of their customers, and expand upon their share of financial services."

Preston says the company's internal research shows that consumers prefer to be recognized and rewarded for their entire relationship with a financial institution, and that MasterCard is working to help financial institutions broaden the entire banking relationship.

MasterCard will offer relationship rewards programs beginning in early 2007. Banks will have the ability to customize programs to any degree desired. Rewards can be earned on deposit or investment balances, the number of products held, transactional elements such as card purchases, online bill payment, direct deposit, as well as one-time promotional events such as a mortgage or HELOC application/approval.

Additionally, rewards from personal and small-business products can be commingled, allowing customers to have a consolidated rewards "bank" from which they can take advantage of everything from cash back, travel and gift certificates to matching contributions and experiential rewards.

Banks needing to build a business case for relationship rewards can take advantage of best practices financial modeling, competitive analysis, cross-sell and product suite diagnostic tools as the front end to the program. Program design, marketing campaign planning, ongoing program management, results tracking and analysis are other components of the MasterCard relationship rewards offering.

"MasterCard is helping to create true loyalty among bank customers, creating a deeper connection to create advocates, not just points-redeemers," says Mark Shipley, Group Head, Loyalty Solutions Worldwide, MasterCard Advisors. "We are constantly working to deliver loyalty solutions that create real value by driving true loyalty between retail banks and their customers. MasterCard is able to do this by offering innovative, secure, customizable rewards solutions that feature three distinct elements: personal rewards expertise, rich consumer spending data, and advanced global technology. These highly targeted programs can deliver the right solution to the right consumer, to get the right behavior in return—ultimately creating consumer advocates for banks' business."

MasterCard Rewards Services is a fully integrated, customizable operating platform capable of managing multiple points-based, travel, cash-back and gift certificates, and other loyalty programs.

MasterCard Rewards Services offers such features as:

• Account migration capabilities that can be utilized for customer segmentation and promotional strategies
• Extensive global data scrubbing and aggregation conducted to assist in providing the most flexible and accurate promotion opportunities available
• Ability to configure the system to add programs/strategies or support spend-based promotions, bonus points, test cells
• Householding of multiple accounts
• Currency conversion
• Country-specific reporting capabilities
• Multiple language and country call center and fulfillment capabilities including statement and redemption websites
• Global expertise in loyalty and rewards consulting, and program planning and development.

The program supports the design of promotion criteria and reward redemption categories, including airline, travel, merchandise, gift vouchers (certificates), prepaid cards, and issuer-offered financial products and services. A statement option allows cardholders to view balances and redeem rewards 24 hours a day, including via the internet.

Source: MasterCard Worldwide