Traditional banks are currently struggling to maintain credit card engagement because they fail to match the seamless digital experiences provided by modern tech giants. Aishwarya Jaishankar, co-founder of Hyperface Technologies, points out that banks often rely on fragmented legacy systems that result in slow reward delivery and poorly timed marketing campaigns. This lack of integration leads to significant customer frustration; in fact, at some global institutions, over a third of support queries are simply customers asking where their promised benefits are.
A primary source of friction is the significant delay between a customer’s spending and the crediting of rewards, which can sometimes take up to 40 days. Modern consumers expect immediate feedback and the ability to track their progress toward goals in real time. When banks fail to provide this visibility, the initial excitement of a new card quickly fades, leading to high rates of dormancy where cards are left unused shortly after they are issued.
To combat this trend, Hyperface suggests that banks must monitor customer behavior more closely, particularly in high-loyalty categories like fuel. If a user stops spending in a specific category for 30 days, it serves as an early warning sign for banks to intervene. Data shows that sending targeted offers on the 31st day of inactivity can reactivate as many as 40% of dormant users, often encouraging them to resume spending across other categories as well.
This shift toward customer-centric technology is gaining momentum across the Asia-Pacific region. Lenders in markets like Japan are increasingly viewing banking through the lens of premium retail, where the goal is to recognize and reward the customer instantly. As institutions in India, Vietnam, and beyond move toward these agile digital partnerships, the focus is shifting away from disconnected tools and toward a unified, responsive user experience.
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