From points to purpose: The evolution of loyalty and rewards programmes

One of the most notable trends is the increasing digitisation of customer engagement within these programmes. In South Africa, the widespread adoption of mobile banking and digital payments has fuelled the shift towards app-based rewards systems. Customers now expect real-time tracking of their rewards, seamless redemption options, and personalised offers tailored to their spending habits.

As a result, programmes that integrate directly with banking apps and digital platforms are seeing greater engagement and increased adoption. Recent enhancements to the Nedbank Greenbacks programme reflect this shift, and members of the programme appreciate the seamless integration into Nedbank’s digital ecosystem, including its Avo super app, making it easier for them to earn and redeem rewards.

Beyond rewards for spending, modern loyalty programmes – particularly within the financial services sector – are increasingly being restructured to promote responsible financial habits. This marks a departure from traditional models that merely incentivised transactions. Today’s leading programmes encourage saving, investment, and smart spending, and align the benefits they provide with the long-term financial wellbeing of customers.

By linking rewards to behaviours such as maintaining a savings balance, automating bill payments, or using digital banking services – all of which form an integral part of the Greenbacks programme – these programmes help customers build healthier financial habits, make sound financial choices, and develop habits that contribute to long-term financial stability.

The rising cost of living has made consumers more discerning about the value they receive from loyalty schemes. Rewards that provide direct financial relief – such as cashback on essential purchases, discounts on fuel, or the ability to convert points to savings – resonate strongly with customers who are looking to stretch their budgets. In a competitive market, programmes that offer flexibility in how rewards are redeemed really stand out. Whether it’s using loyalty points to offset monthly expenses, access discounts on travel, or invest in long-term financial security, customers appreciate having options that align with their immediate and future needs.

Against this backdrop, some rewards programmes, like Greenbacks, have adapted by offering members opportunities to earn significant cashback payments on everyday essentials like groceries and fuel, as well as the ability to redeem rewards for lifestyle experiences, digital purchases, and travel. For instance, Greenbacks members now earn up to 2% cashback on all their card transactions, receive 25c per litre back on fuel purchases at bp, and get up to 30% off flights and 50% off cinema tickets, helping them to maximise their budgets.

The next frontier in loyalty programmes is undoubtedly significantly greater use of data analytics and artificial intelligence (AI) to deliver hyper-personalised experiences. By analysing transaction patterns, engagement level, and customer preferences, companies can offer tailored rewards that are more relevant and impactful. This data-driven approach enhances customer satisfaction by ensuring that rewards remain meaningful and enables banks and retailers to refine their programmes in real time, adjusting offers based on market conditions, seasonal trends, or emerging consumer needs.

Greenbacks is already harnessing the power of data to deliver these enhanced rewards. It leverages insights from client behaviours to optimise its offerings, ensuring that members enjoy benefits that align with their financial priorities and lifestyles.

As consumers continue to navigate an increasingly complex economic environment, the important role that loyalty and rewards programmes play in shaping positive behaviours and encouraging better financial decisions is set to increase exponentially. The recent enhancements made to Nedbank Greenbacks offer a valuable example of how rewards can be structured to encourage better financial choices while delivering practical value.

In the past five years, the programme has evolved dramatically, resulting in a steady increase in member sign-ups and positive feedback from Nedbank clients and the loyalty and rewards industry as a whole. The Greenbacks programme’s recent nomination in no fewer than four categories at the prestigious International Loyalty Awards 2025 validates this enhanced, purpose-driven approach and recognises the positive influence it is having on client behaviours and financial wellbeing.