How to Choose the Right Banking Partner for Your Co-branded Credit Card?

varsha sarkar

June 1, 2023

3:44 pm

How to Choose the Right Banking Partner for Your Co-branded Credit Card?

Co-branded credit cards offer your customers a great deal of value. When customers purchase your products or services, they earn bonuses and rewards, cashback and offers, and other benefits that help you attract and add new customers to your company.

So, now if you’ve decided to introduce a co-branded credit card, partnering with a bank is a first and foremost essential step. There are various banks from which you can choose for your co-branded credit card. How you can pick the ideal bank partner to maximize the benefits of your credit card program? This article will surely answer this question in the simplest way.

What is a Co-Branded Credit Card?

A Co-branded credit card is when one of your favorite companies or brands such as Amazon, Flipkart, or Bajaj partners with a bank or credit card issuer. For example Amazon Pay ICICI Bank Credit Card, Flipkart Axis Bank Credit Card, and Axis Bank Vistara Signature Credit Card.

One of the main points of a Co-branded credit card blends the rewards and perks of shopping and using the services of the company and Traditional credit cards. At the end of the day, the sole purpose of launching a credit is to incentive its customers so that they keep coming again and again to use your products and services.

Factors to consider while choosing the right bank partner for your Co-Branded credit card?

Partnering your Co-branded Credit card with the bank is like the relationship of the Husband-wife as both are necessary for each other. Both parties must keep working together to achieve their shared objective of providing quality service to all consumers! Before Choosing a Bank partner consider the factors we have mentioned below. These points will clear your doubts

Digitally dedicated

Delivering a digitally dedicated credit card experience is essential in this digital era for the ease of your clients and the long-term viability of your customer association. In the long run, customer experience comes first. So, when choosing a partner bank, make sure to look for these two things – The belief that digitalization is crucial; the ability and motivation to act digitally.

In today’s interconnected society, a digital-first experience is crucial, therefore you should make sure your clients can sign up for the card, change card settings, and take advantage of incentives and advantages digitally.

The Scale of Your Co-Branded Credit Card

Knowing the scale you want to reach is a crucial step while issuing a Co-branded credit card. Make sure the Bank has the necessary capability to issue cards at scale in the marketplace if you are looking to offer 100,000 cards.

You must also make sure that the Bank covers all of these cards in its long-term plan. Otherwise, there is a risk that the Bank will sign up additional co-brands and use all of their available issuance capacity. The Bank’s financial strength determines the viability of the card issuance. Analyzing the Bank’s current number, recent growth, and potential future expansion.

Funding the Customer Value Proposition

If you are indulging in an E-commerce business or running an E-commerce platform your bank partner will have to aggressively co-fund the advantages of the card. The majority of CVPs are co-funded by the Bank and the brand, and this financial funding must be continuous. It would be better to bargain with the Bank for the most significant amount of funding they can provide.

Additionally, each Bank takes a unique strategy for the advertisement. While a larger bank might only offer limited promotional support, New banks may actively offer your co-branded credit card holders greater value in the form of faster incentives and bonuses.

Incentive driven Alliance

For Your credit card program to be successful in today’s cutting-edge competitive market, it is crucial to forming an alliance with the Bank that provide the appropriate and unique incentives. If the initiative fails to gain the required amount of momentum as shown by card acceptance and use; banks lose confidence. This is the challenge that your program must pass through.

The ideal way to do this for you and the Bank is to reward you for continuing to use your card as opposed to paying upfront for each client.

Conclusion

In a Nutshell, A co-branded credit card is an effective way to boost client retention, foster client loyalty, and scale expansion. The launch of an important financial product is crucial for fintech companies. However, it will take patience and diligence on your part to find and cooperate with a reliable partner bank.

varsha sarkar

June 1, 2023

3:44 pm

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