News Releases
Competition for banking customers intensified today after BMO Bank of Montreal announced a significantly-enhanced loyalty program that rewards AIR MILES Collectors for all of their debit card transactions.
The program is a move by BMO to capture the personal banking business of AIR MILES collectors who currently represent nine million active collector accounts or approximately two-thirds of Canadian households.
Starting June 1, 2007, BMO's personal banking customers will now be able to collect AIR MILES reward miles whenever and wherever they make purchases using their BMO Bank of Montreal debit card.
“Our number one priority is to attract new customers and build lasting relationships with them,” said Lynne Kilpatrick, Senior Vice President, Personal Banking, BMO Bank of Montreal. “The introduction of this exciting new program will set BMO apart from our competition.”
According to Statistics Canada, Canadian households spent approximately $2,500 per month or $30,000 per year in 2005 on basic household requirements, such as groceries, gasoline, entertainment, clothing and transportation. Given that Canadian consumers use debit cards to make approximately 34 per cent of all household purchases, collectors will build significant reward miles over the course of a year.
In addition, BMO customers who have a Mosaik MasterCard with an AIR MILES Reward Option, can also increase their monthly reward totals, by as much as 30 per cent, simply by doing more business with BMO. For example, BMO will increase the value of rewards earned each month by a multiple of 10 per cent, 20 per cent or 30 per cent depending upon how many BMO banking products and services customers have in their portfolio of bank business.
According to market research*, consumers are particularly attracted to reward programs in which points are collected quickly and redeemed sooner. Adding a debit card component to its existing credit card reward program, lets new and existing BMO Bank of Montreal customers build their AIR MILES balances faster without changing the way they shop and without incurring additional fees.
“If you're an AIR MILES collector and you're not already banking with BMO, you really need to ask yourself why not,” said Ms. Kilpatrick. “No other bank can help you collect sooner, redeem quicker and deliver more bang for your household buck.”
“This is a very exciting development in our long-standing relationship with BMO Bank of Montreal and a significant opportunity for AIR MILES Collectors to get the most out of their daily expenditures,” said Bruce Kerr, Senior Vice President, AIR MILES Reward Program. “With this launch, AIR MILES collectors have even more ways to earn valuable reward miles, and more importantly, more reason to do their everyday banking with BMO.”
Since 2002, debit purchases in Canada have grown 73 per cent, which leads all other countries in the total numbers of transactions conducted per person.
“Combining AIR MILES with debit cards – two concepts Canadians have widely embraced – will change the landscape of loyalty programs and encourage consumers to make the switch to BMO,” said Kilpatrick. “We are the only major financial institution that rewards debit purchases with a comprehensive choice of more than 800 redemption items.”
BMO Bank of Montreal is a pioneer and market leader when it comes to rewarding customers for their personal banking. In 1992, with the introduction of the AIR MILES Reward Miles Program, BMO became the first major bank in North America to start rewarding its customers for their personal banking.
For additional information on BMO's new AIR MILES program visit: www.bmo.com/airmiles.
About The AIR MILES Reward Program
The AIR MILES Reward Program is North America's premier coalition loyalty program, with more than 9 million active Collector accounts, representing approximately two-thirds of Canadian households, collecting AIR MILES reward miles with the recognizable blue card.
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BMO's Frank Techar (right), President and CEO, Personal and Commercial Banking Canada, and AIR MILES President Bryan Pearson (left) introduced significant enhancements to BMO's AIR MILES rewards program at Toronto's First Canadian Place. This new program now rewards collectors for all of their debit card purchases.
BMO's Frank Techar (left), President and CEO, Personal and Commercial Banking Canada, and AIR MILES President Bryan Pearson (right) introduced significant enhancements to BMO's AIR MILES rewards program at Toronto's First Canadian Place. This new program now rewards collectors for all of their debit card purchases.