Introduction
In the ancient days, people used to store their savings and hard earned money in their houses and more specifically in their beds and under the pillows. Of course, this attracted the thieves and break-in into houses and burglary were common among the society. For this very purpose alone financial institutions known as banks were created to curb the problem of thievery and other forms of fraud. This financial institution would be the sole custodian of the resources of everyone and the persons alone would be able to access the contents of it. Even the bank personnel would not be able to access the contents and thus solving the issue of manipulation and other problems from the bank officials themselves. The banks then decided it is not profitable to just take and store money of people but it would be beneficial to all to loan the money to other people and provide small incremental monetary benefits in the form of interest.This process was slightly upgraded into something slightly more complicated such as loyalty reward that based the incentives on your relationship with the bank in terms of credit, debit, and other forms of transactions. After the introduction of this method of appreciating the relationship that customers share with the bank, a better understanding developed between the bank and people to build trust and goodwill.
A Test Of Loyalty And Trust
Being awarded for your trust and faithfulness is something that is being undervalued in today’s world. It is easy to forget the ideals of goodwill and focus purely on the monetary aspects of life. That is why the loyalty programs were introduced in the banks so as to promote a sense of sound relationship between the bank and the people. Loyalty rewards are measured in points that are calculated using the various debit and credit transactions that the customer has with the bank and then gifts and annual vouchers of that sort are provided to increase the goodwill existing between the bank and the customers.
Conclusion
The more loyal the customer is the more beneficial it is to the bank and a satisfied customer will attract more satisfied customers that will eventually be profitable for the bank in the long term. That is why it is best to maintain a sound relationship with the people that are the reason for the existence of a financial institution.
