Cardlytics Releases White Paper on Benefits of Card-Linked Marketing for Banks

Company Results Prove Card-Linked Marketing Adds Incremental Value to Banks through Deeper Customer Relationships

ATLANTA, September 3, 2014 — Cardlytics, the leader in Card-Linked Marketing with thousands of advertisers and hundreds of national brands, today announced the release of its latest white paper: “Benefits of Card-Linked Marketing for Financial Institutions – Increased Card Usage and Decreased Customer Attrition.” The white paper examines the impact of interchange fee limits on customer engagement programs, then goes on to document how the Cardlytics Card-Linked Marketing program in place at Bank of America, PNC Bank, Regions Bank and hundreds of others, has stayed attrition and increased debit and credit card use and spending. Interchange fee limits placed on debit transactions – one of bank customers’ preferred methods of payment – have reduced the ability for banks to generate revenue from this vital source. To recoup this revenue, banks risk chasing away existing customers with added fees and a decreased offering of services. The white paper analyzes the ways Card-Linked Marketing can help banks make up for this loss. Citing data from the Cardlytics program the paper illustrated how Card-Linked Marketing:

• Increases card spend – Customers who have redeemed at least one Cardlytics advertiser reward spend an average of 4% more with their bank cards
• Increases online and mobile use – Customers who have activated rewards have a 16% increase in online banking logins,and 30% of activations come from mobile within the first six months of adoption
• Decreases attrition rate – Customer engagement with Card-Linked Marketing produces an overall decrease in attrition rate, and redeemers stay more engaged
• Attracts new retail customers – Nearly half of all customers between the ages of 26 and 34 are likely to switch card providers to get a targeted rewards program
• Enhances relationships with existing customers – Banks create loyalty and brand value with their customers with easy-to-use rewards that help them save money on the things they buy every day

“Banks shouldn’t have to choose between growing revenue and maintaining customer relationships,” said John Brown, President of US Operations at Cardlytics. “Card-Linked Marketing gives banks a way to meet a variety of customer engagement needs as they decrease attrition and drive incremental revenue through more card use and spending.” Through partnerships with nearly 400 banks, the patented Cardlytics advertising platform places targeted advertising from hundreds of national brands and thousands of regional brands to reach millions of consumers through their online and mobile banking statements.About CardlyticsCardlytics is an advertising and technology company and the leader and pioneer in Card-Linked Marketing. Through partnerships with nearly 400 financial institutions, including Bank of America, Lloyds Banking Group and many others, the company has insight into consumer purchase behavior for 70% of U.S. households and 30% of U.K. households, capturing spending across all stores and categories. Cardlytics’ patented technology allows advertisers to make a direct connection to millions of active buyers through multiple digital platforms, including their online banking and mobile banking applications. Cardlytics is headquartered in Atlanta, with offices in London, New York and San Francisco. The company is funded by leading investors in Boston and Silicon Valley, as well as a strategic investment from the world’s leading loyalty company, Aimia.