Q&A: How Banks Can Drive Front-of-Wallet Loyalty in a Neobank World

Customer loyalty in Financial Services isn’t what it used to be. Consumers aren’t just shopping around – they’re actively switching. In fact, 1 in 4 customers switch their primary card every year. As neobanks redefine expectations, traditional players are rethinking how to stay relevant and reduce churn.

We sat down with our Head of Strategy, Ryan Coomer, to unpack the biggest challenges and opportunities facing marketers in the industry today.

Q: Let’s get started – what’s the #1 challenge for banks right now?

A: Staying front-of-wallet. That means being the go-to card or account your customers choose without thinking. Most banks have strong acquisition engines and solid brand awareness. But staying top of mind (and top of wallet) takes more than being known – it takes being chosen, over and over again.

And that’s not about doing more. It’s about getting more from what you already do well.

Banks are realising that acquiring a customer is just the beginning. The real value comes from how often they use your services.

Q: But if I’ve already acquired the customer, isn’t the hard part over?

Not exactly

Acquisitions are great, but they have to go hand-in-hand with retention. Most marketers know retention matters just as much. What’s often missing isn’t the knowledge – it’s the headspace, the capacity, the tools to activate the loyalty loop with consistency and impact to go beyond the first incentive.

This isn’t about reinventing your strategy. It’s about unlocking more value from it. Enhancing moments that already exist. Showing up when it counts – and knowing which moments count most.

Leading banks are now considering early adoption, as well as Customer Lifetime Value and how important milestones and life stages fit into the cycle – basically, how do you show up when customers need you most?

Q: How are neobanks changing the game today?

Neobanks like Monzo and Revolut have shifted the benchmark.

⁠⁠⁠⁠⁠⁠⁠Research shows consumers using a neobank as their main debit card rose from just 1% at the end of 2020 to 9% at the end of last year. All the while, the Big Six’s market share in the UK fell from 85% to 71%.

Why? Because neobanks are designed to be front-of-wallet. They’ve baked in smart features – like budgeting tools, slick apps, and personalised touches – that drive this daily use.

But here’s the thing: many traditional banks already offer robust value. The challenge is perception and precision – making sure your brand is seen as relevant, responsive, and rewarding in the moments that matter most.

Neobanks are nimble, but they don’t have the scale or the trust of more traditional banks. Regardless, the banks that are winning are focusing on what’s already working, just in smarter ways.

Q: How can banks earn front-of-wallet status, then?

That’s a very good question, I’m sure most financial marketing leaders have asked themselves over the past 12 months!

They’re investing in incentives, building journeys, launching campaigns. The opportunity lies in turning tactical success into strategic momentum – and making everyday choices feel like no-brainers for customers.

That’s where thoughtful incentives come in. Tools and tactics that nudge behaviour and deepen emotional connection.

Q: What do those incentives look like?

We all know consumers care about one thing – what’s in it for me? They want to feel recognised, as well as rewarded. And they remember the brands that get it right.

It’s all about creating a positive association with your brand by rewarding usage. You can’t incentivise consumers to spend more or overextend themselves, so banks are looking at innovative ways to incentivise consumers to use their card as their go-to. This means going beyond sign-up bonuses and thinking longer-term.

Financial marketers are under pressure to stand out in a market where everyone’s offering something. And many already know that cash-only approaches have limitations. They can drive spikes – and there is a place for them. But we also know that it’s the reason consumers switch regularly between providers.

So for longer-term loyalty?

A recent study by Accenture stated that 72% of customers say personalisation influences their choice.

Personalised, relevant incentives create stronger brand bonds. But building that emotional connection takes more than creative thinking – it takes behavioural insight, executional support and ongoing refinement.

– and this is something financial marketing leaders are critically aware of. The real challenge is having the time and resource to turn those ideas into results that stick.

Q: How do you know what your customers value?

Banks have all the data they need to understand their customers at their fingertips. The challenge is often time, tech or headspace to make sense of it.

That’s where partners come in. Not to take over – but to help you translate insight into action. To show up with ideas that connect lifestyle with loyalty and engagement. They can help you tap into your customers’ interests, needs and lifestyles, and offer experiences that align with these. Think dining rewards, wellness perks, personalised travel offers – things that feel aspirational but attainable. That’s what makes you memorable.

And the more those moments land, the more data you get. We work alongside your teams to uncover high-impact opportunities hidden in plain sight – connecting lifestyle, loyalty and longer-term value. At TLC, we call it the Virtuous Data Loop – a smarter way to fuel personalisation and performance.

You’ve got the customers and the intel. We help you join the dots and use insights and 30 years’ experience to create the right incentives strategy.

Q: How can brands offer personalised incentives at scale?

Rewarding customers regularly with purely cash incentives just isn’t sustainable. Imagine being able to offer all your customers personalised rewards at scale, proven to change purchase, engagement and loyalty behaviours – for a fraction of the cost. This is where TLC can help.

We partner with over 100,000 brands globally – not just to offer choice, but to keep costs manageable. We’ve spent decades perfecting what we call the Reward Value-Cost Paradox: offering higher perceived value to your customers, for a fraction of the cost.

Q: How do you know if you’re getting it right?

High-value behaviours – salary deposits, regular spend, multi-product engagement – are the signals financial marketers look out for.

The strongest loyalty is emotional. And that emotion is built through relevant rewards, timed well, delivered consistently.

The marketers who win aren’t guessing – they’re listening, adapting, and nudging at just the right moments.

You’ll truly know you’ve got it right when customers not only stick around, they recommend you to others too. Over 70% of consumers are more likely to recommend a brand if it has a good benefits offering – so banks are making this a priority.

Transforming customers into loyal brand advocates is the ultimate goal.

Q: What’s the secret to lifelong customer loyalty?

We all know banking isn’t one-size-fits-all. But many loyalty strategies still treat customers as if they are all the same. That’s where the opportunity lies – in evolving your approach with your customer’s life journey.

From pocket money to pensions – how are you showing up at every stage? Presumably you have the banking products and services in place, but are your benefits evolving to align with customer needs? Think entertainment, fashion and food for students; home services, movie streaming and fun days out for families… or flights, hotel breaks, wellness, golf, self-improvement..

And the longer they stay, the benefits should increase too. Tiered benefits strategies achieve the best results. Free cinema tickets turn into wellness retreats, free flights and hotel stays. Because when your benefits grow with your customer, so does your relevance in their life.

Q: Any final advice for Financial Services marketers stuck in the acquisition loop?

You’re not stuck – you’re ready to move forward.

Most financial marketers aren’t missing the strategy. They’re missing the space to step back and optimise it. Marketers in Financial Services are doing a lot right.

But even the most seasoned teams benefit from a partner who brings outside perspective, industry benchmarks, and tested ideas that turn good into exceptional.

It’s about unlocking more value, more consistently – with a partner who understands your space, your pressures, and your potential.

That’s what we do at TLC. We don’t just offer solutions; we work with you to amplify what’s already working, and help you deliver more – with less strain on your team.

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