Ally Uses Loyally Rewards to Deepen Everyday Banking Ties

Ally Financial is using its Loyally rewards program to pull customers deeper into its consumer bank, which held $144 billion in deposits and served 3.6 million customers at the end of June. The bank announced the program on Sept. 22, after piloting it earlier this year and making it available to all customers in May.

Loyally offers discounts, subscriptions, cash rewards and chances to win tickets or VIP access to sports and entertainment events. Customers can find the offers in Ally’s app, with no fee or minimum account balance required.

Partner offers include Calm, Airvet, Spotify, Instacart+ and Booking.com, according to Ally. The company says some individual perks may be worth up to $1,000 a year, while VIP experiences may be valued at up to $10,000.

The strategy extends Ally’s pitch beyond high-yield savings and fee-free banking. Lindsay Sacknoff, Ally’s consumer banking president, told Banking Dive that customers using the rewards program are twice as likely to hold both deposit and investment accounts with the bank.

That link matters as Ally seeks more of customers’ daily financial activity, not just their savings. The bank can also tailor offers, such as a bonus for a customer who opens an Ally Invest account, Sacknoff said.

Ally’s customer base grew 7% year over year in the second quarter, and about 75% of its new checking and savings customers were Gen Z or millennials, according to Sacknoff. Those age groups also use Loyally most, she said.

The move comes as banks compete to bundle rewards across customer relationships. Bank of America expanded its no-fee BofA Rewards program in May, while PNC introduced a relationship-based rewards program in April.

Ally has not disclosed how much it is spending on Loyally. Sacknoff said the bank plans to track customer engagement and refresh its offers, making continued participation and cross-use of Ally’s banking and investing products key measures to watch.