Russian banks are gearing up for intense competition over customer loyalty as the year 2025 approaches. According to VTB Bank, the country's financial institutions are expected to pay between 400 and 500 billion rubles to users of their loyalty programs—figures poised to break records for cashback payments.
Georgiy Gorshkov, VTB's Deputy President, recently announced the bank's ambitious plans to double both the number of active users participating in its loyalty program and the total amount of cashback payouts this year. He remarked, "The key trend this year will be intensified competition: banks will not only actively increase cashback amounts but also launch personalized offers and promotions to retain customers." This effort aims to tailor services and products to meet the specific needs of users.
Judging by previous trends, banks are likely to boost transaction activity by making rewards more appealing. The high level of engagement expected from customers could mean they're not only participating but actively seeking out rewards as transaction levels rise.
VTB projects record growth driven by innovative strategies, including gamification. This trend involves banks providing interactive contests and promotions allowing users to select extra cashback categories or earn enhanced percentages. Gorshkov noted, "Such approaches will increase customer engagement and transaction activity, creating a more dynamic and enjoyable experience for users." This year, banks are expected to explore diverse avenues to appeal to consumers.
Another big shift is anticipated through partnerships between banks and various service providers, such as delivery services, transportation, and online shopping platforms. Such collaborations would mean consumers can earn cashback not just through banking products but also for their everyday purchases linked to partner services.
Gorshkov emphasized the importance of cashback as "the most important tool for attracting and retaining customers". He expressed confidence in the financial sector's resilience, stating, "Despite all the challenges facing the market, banks will continue to invest heavily in their loyalty programs, developing new projects and increasing payouts." VTB has launched several flagship projects, promising to deliver even more to customers for their daily operations, referred to as "live" rubles.
Since VTB updated its loyalty program last May, the amount of ruble cashback paid out has doubled compared to 2023 when the bank offered credit bonuses instead. The number of program participants has also seen impressive growth, doubling over the same period. This trend is expected to continue as banks like VTB gear up to engage more actively with their consumer base.
By leveraging customer feedback and adapting services accordingly, VTB hopes to solidify its client relationships even amid increasing competition. With new additions to the cashback program and creative offerings, 2025 looks set to be a landmark year for Russian banks and their commitment to consumer loyalty.
At the forefront of this initiative, VTB is ready to not only embrace current trends but also set benchmarks for others to follow. The future of banking rewards appears promising as the sector navigates this phase of customer-focused innovation.