Open banking — where banks share customer data (with consent) via APIs — creates possibilities for loyalty programmes that were impossible when financial data was siloed.
New Possibilities
Automatic Earn from Bank Transactions
Instead of requiring customers to pay through a loyalty app, open banking lets programmes identify qualifying purchases from regular bank transactions. Bought coffee at a participating merchant using your debit card? Points earned automatically, no app payment needed.
Smarter Top-Up
With visibility into account balances and spending patterns, loyalty apps can suggest optimal top-up amounts and timing. "You usually spend S$200/month at participating merchants. Top up S$200 now and earn a 5% bonus."
Spending Insights
Combine loyalty data with banking data for a complete picture. Customers can see what percentage of their total spending earns rewards — motivating them to shift more spending to participating merchants.
Where Asia Stands
Singapore's API Exchange (APEX) and MAS guidelines support open banking principles. Adoption is growing, though it's behind the UK and EU. As more banks open their APIs, the integration opportunities for loyalty platforms multiply.
The Trust Equation
Open banking requires customers to share financial data. Loyalty programmes that leverage this must demonstrate clear value — if sharing bank data only earns a few more points, customers won't bother. The value exchange must be compelling.