Banking vs Fintech: How Banks Can Retain Customers in a Digital-First Market

According to the BSP, digital payments made up 57.4% of retail transactions in the Philippines in 2024. This shows how quickly customers are adopting digital banking and e-wallets. As expectations rise, banks need to deliver faster and more relevant experiences to stay competitive.

As digital adoption grows, the gap between traditional banking and fintech continues to narrow. Understanding their differences helps explain where fintechs are gaining ground.

The rundown

The rise of fintechs and digital banks has reshaped the Philippine banking landscape, giving customers more choices than before.

This shift is most visible in three key areas:

• Payments: Digital wallets and banking apps now make transfers and purchases quicker and easier.
• Lending: Digital lenders simplify applications and approvals, reducing long processes.
• Wealth Management: Investment platforms lower entry barriers and make products easier to access.

As customers get used to these experiences, traditional banks face more pressure to keep them active within their platforms. 

Loyalty programs are becoming a key differentiator

Banking products are becoming easier to access, which means customers can switch providers with little effort. Because of this, loyalty programs are starting to play a bigger role in keeping customers engaged.

Customers respond best to rewards that feel:

• Relevant to their lifestyle  
• Easy to redeem  
• Available right when they need them 

The challenge: delivering rewards at scale

Running reward campaigns can be complex. Banks need to manage registration, validate customer data, track rewards, and handle distribution. These tasks require time and resources. Banks must also meet data privacy rules and compliance standards. At the same time, customers expect rewards to be delivered instantly. To stay competitive, many institutions are moving toward automated and digital solutions. 

How Pluxee helps simplify reward campaigns

At Pluxee, we help banks run reward programs in a way that is both efficient and easy to manage such as:

• Loyalty programs  
• Credit card and purchase promotions  
• Referral campaigns  
• Contests and raffle prizes  
• Employee incentive programs  

What this looks like in practice:

A secure microsite to manage your campaigns

With our secure and customizable microsite capability, banks can register participants, validate entries, and track campaign performance in one place. It helps keep campaign data organized and secure while making execution easier to manage from end to end.

Faster reward delivery through API integration  

Our API integration capability enables rewards to be distributed automatically once customers meet the campaign criteria. This helps reduce manual steps and enables faster, more seamless fulfillment across the client’s preferred platform.

Turning rewards into a growth opportunity

As fintech players continue to grow, banks have an opportunity to stand out in a different way. Not just through features, but through how they engage and reward their customers. By delivering seamless experiences, banks can build stronger relationships that keep customers coming back.

Ready to make every reward count? Explore how Pluxee can help you create more engaging campaigns with less operational effort.