The news: Bank of America (BofA) said more than 3 million customers enrolled in its new BofA Rewards program within seven weeks of its May 27 launch, per a press release. The no-fee loyalty program expands eligibility beyond Preferred Rewards, allowing anyone with an eligible personal checking account to participate. 

Zooming in: The program rewards customers for their entire relationship with BofA and Merrill. Benefits include:

• Credit card rewards bonuses
• Cash-back deals and merchant discounts (15,000+ merchants)
• Enhanced fraud and identity monitoring
• Subscription credits and lifestyle experiences for higher tiers

Each week, about 17,000 new members are new BofA customers. The program is helping attract new business in addition to deepening existing relationships. Nearly 1 million customers have used the Deals feature, with retail, gas, entertainment, and dining the most popular. And roughly 80% of enrollments occurred through digital channels, highlighting strong digital adoption. 

Why it matters: The launch underscores banks’ increasing use of relationship-based loyalty ecosystems to improve customer acquisition, engagement, and retention. Banks are encouraging customers to consolidate more of their financial lives—from checking to investing—with a single provider. That increases customer lifetime value while making it harder for customers to switch institutions. 

And by combining rewards with everyday banking benefits and making the program accessible to customers regardless of account balance, BofA is positioning loyalty as a long-term relationship-building tool, per CustomerExperienceDive.

Implications for financial services: BofA's investment in rewards reflects that consumers don't choose banks based solely on the highest interest rates. Our research found that branches, customer service, fees, fraud prevention, and digital capabilities all rank ahead of interest rates when consumers evaluate banks. In that environment, relationship-based loyalty programs give banks another way to differentiate by delivering ongoing value beyond pricing. As competition for primary banking relationships intensifies, more institutions will invest in ecosystem-style benefits to deepen engagement and make customers less likely to switch providers.

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