Citi Bank to Increase Brand Loyalty With New Acquisition

Citi Bank is personalising its customer experience.

The bank’s Consumer Cards business – which serves more than 70 million customers – has announced that it is acquiring commerce media and rewards platform Kard Financial. 

This platform was created to help banks and fintechs deepen customer engagement through personalised offers, with financial institutions currently looking to deepen customer loyalty amid rising competition.

“We’re focused on helping customers get more value from their everyday spending,” says Abhinav Anand, Citi’s Head of Value Cards, Lending and Commerce. “Kard has built advanced capabilities that complement our vision for the future of commerce and loyalty. 

“With this acquisition, we believe we can work with Kard to accelerate innovation and deliver more personalised experiences for customers while creating new opportunities for brands and merchants to reach, engage and reward consumers in more meaningful ways.”

What is Kard Financial?

Founded in 2015 by CEO Ben MacKinnon, Kard Financial is a commerce media platform that connects financial institutions with retail brands, using predictive AI and verified transaction data to offer personalised reward programmes for customers – which the company says helps brands reach “high-intent consumers” and deliver more measurable outcomes. 

This acquisition is set to strengthen Citi’s commerce ecosystem by helping the bank offer more personalised rewards and offers for its customers, potentially increasing customer retention. 

“Joining forces with Citi marks an exciting new chapter for Kard, our team and our customers,” says Ben. “I started Kard with the goal of building more rewarding experiences for consumers. 

“Now being able to do that for Citi’s 70 million card members, on top of the millions we support today, accelerates that original vision towards building the future of commerce.”

Building brand loyalty

Rewards programmes and personalised offers can make a significant difference to customer retention. 

According to research from EY, 92% of consumers are signed up to at least one loyalty programme, and 50% are in more than five – while McKinsey found that personalised marketing can reduce customer acquisition costs by as much as 50% and increase marketing ROI by 10%-30%.

And building up personalised offers has been a strategic priority for Alex Craddock, Chief Marketing and Content Officer of Citi, since joining the company in 2024 – telling Banking Dive that personalisation was one of the brand's three key priorities as he looks to “reenergise” the brand. 

“How can we use AI to personalise content, whether that’s for specific client segments, or how we personalise, for example, our credit card marketing real-time?” he said. “That can be accelerated with AI.”

Other banks are also increasing their rewards programmes and personalised offers, as part of industry-wide efforts to increase customer loyalty. 

Bank of America, for instance, launched BofA Rewards in May – a no-fee loyalty programme designed for more than 30 million customers. According to the company, the programme offers personalised benefits – such as cashback deals and discounts – and lifestyle benefits across categories such as travel, automotive and sports. 

“BofA Rewards ensures every client, no matter where they are in their financial journey, can experience meaningful benefits and feel valued for their relationship with us,” Mary Hines Droesch, Head of Consumer and Small Business Products & Analytics at Bank of America, said of the programme. 

“Clients want loyalty programs that offer the flexibility to choose benefits that reward their ambitions. BofA Rewards delivers differentiated value that evolves with clients’ goals.”