Priya Jaiswal stands as a preeminent voice in the global financial landscape, bringing decades of experience in market analysis and portfolio management to the table. As an authority on international business trends, she has navigated the complex intersections of consumer behavior and banking infrastructure through numerous economic cycles. Her insights are particularly sought after now, as the industry undergoes a fundamental transformation in how it defines value for the consumer. Today, she joins us to discuss the seismic shift in the Australian banking sector, specifically looking at how the nation’s largest loyalty program is being reimagined to meet the pressing needs of over nine million customers.
The following discussion explores the strategic move from spend-based rewards to relationship-centric loyalty, the integration of vital lifestyle partners like Woolworths and Origin Energy, and the broader economic implications of regulatory changes on banking products. We delve into how data-driven insights regarding the cost of living are shaping the next generation of financial services and what the upcoming launch of new premium products in 2027 means for the market.
Traditional loyalty programs often focus strictly on credit card spending, but the new model for CommBank Yello includes home loans, insurance, and savings accounts. How does broadening the scope in this way fundamentally change the relationship between a financial institution and its customers?
This shift represents a defining moment in the evolution of retail banking because it moves the focus away from the “swipe” and toward the “stay.” By allowing more than nine million customers to earn points on their home loans and savings accounts starting October 1, 2026, the bank is acknowledging that a customer’s value isn’t just about how much they spend, but how deeply they are integrated into the bank’s ecosystem. For many, a mortgage is the largest financial commitment of their lives, and feeling rewarded for that commitment, rather than just for buying a latte, creates a much more profound sense of loyalty. We are seeing a move toward rewarding the entire banking relationship, which helps stabilize the bank’s deposit base while giving customers a sense of tangible return on their most significant financial responsibilities. It turns a utility-based relationship into a rewarding partnership where every aspect of a person’s financial life—from their insurance policy to their rainy-day savings—is working to put value back into their pockets.
The research indicates that 78 percent of Australians now view rewards as essential for managing the rising cost of living. In your view, how does a loyalty program transition from being a “luxury perk” to a necessary financial tool for the average household?
We have reached a tipping point where loyalty programs are no longer just about earning a free vacation; they are about surviving the monthly budget. When 71 percent of people are redeeming their points on groceries and 44 percent are using them for retail purchases, it’s clear that these points have become a secondary currency. The data shows a massive unmet demand for help with the “un-glamorous” bills—rent, mortgages, and electricity—and by responding to this, the program is meeting customers in their most stressful moments. Imagine the relief a family feels when their points, earned simply by having their home loan with their bank, can be used to offset a high Origin Energy bill or fill up the gas tank at a bp station. This isn’t just about marketing; it’s a practical response to a climate where every dollar counts, turning the CommBank app into a command center for household savings.
With partners like Woolworths Everyday Rewards, DoorDash, and Myer involved, we are seeing a massive lifestyle ecosystem. How do these specific partnerships provide a competitive advantage in a market where consumers are increasingly looking for flexibility?
The competitive advantage lies in the seamless integration of these brands into the customer’s daily routine, making rewards clearer and easier to use than ever before. Take the Woolworths Everyday Rewards partnership, for example; the average member already sees over $170 in annual savings, and layering banking points on top of that creates a compounding effect of value. For the younger, more mobile demographic, the DoorDash collaboration is a stroke of genius, offering two points for every dollar spent and providing complimentary DashPass offers for up to six months. By bringing in diverse entities like More Telecom and Qatar Airways, the program covers the entire spectrum of human needs from the “everyday essentials” like a mobile plan to “life’s little luxuries” like a trip abroad. This ecosystem ensures that the points never feel “stuck” in a single silo; they are liquid assets that can be moved from a transaction account to a dinner delivery or a grocery shop in seconds.
The Reserve Bank of Australia has introduced changes to interchange and surcharging that are reshaping the economics of card rewards. How significant is this regulatory pressure in driving the decision to move toward relationship-based rewards?
These regulatory changes are the silent architects of this new strategy, as they have significantly compressed the margins that traditionally funded credit card rewards. When interchange fees are capped or reduced, the old model of “spend-and-earn” becomes unsustainable for the bank, forcing them to look for alternative ways to fund and justify customer loyalty. By shifting the focus to the broader banking relationship—including high-margin products like insurance and long-term assets like home loans—the bank creates a more sustainable and diverse funding pool for its rewards program. This evolution allows them to maintain customer engagement without relying solely on the economics of card swipes, which are increasingly under pressure. It is a strategic pivot that ensures the program remains viable long-term while shielding the consumer from the diminishing returns of traditional credit card points.
Looking ahead to 2027, there is mention of a new premium charge card being explored. What does the introduction of such a product tell us about the bank’s strategy for the high-end market while still maintaining a broad-based loyalty program like Yello?
The move toward a premium charge card in 2027 suggests a sophisticated “two-track” strategy where the bank can serve the masses with Yello while offering a specialized, high-touch experience for the affluent segment. This new card will likely act as a bridge, bringing together exclusive travel and lifestyle benefits that complement the existing Yello ecosystem rather than replacing it. We can expect this card to cater to those who want more than just help with grocery bills—those looking for elite status with airlines like Velocity or Qatar Airways and premium concierge services. For the bank, this allows for better segmentation; they can provide the “everyday value” that the YouGov research shows is so desperately needed by 78 percent of the population, while still capturing the high-spend, high-margin travel market. It’s about being everything to everyone, but in a way that feels curated and specific to each customer’s financial tier.
What is your forecast for the future of loyalty in the global banking sector?
I believe we are entering an era of “embedded value” where the distinction between a bank account and a discount club will almost entirely disappear. Over the next few years, I expect more institutions to follow this lead, moving away from the isolated 1 percent cash-back model and toward a holistic view of the consumer’s life where points are treated with the same weight as interest rates. We will see hyper-personalization, where your bank’s AI identifies that your utility bill is due and suggests using your accumulated points to cover the 15 percent gap in your budget for that month. Ultimately, the winners in this space will be the ones who can prove they are saving their customers’ time and money in the most friction-less way possible. Banking will no longer be a place where you just store your money, but a platform that actively works to make that money go further through deep, cross-industry integration.
