Flux, the London fintech startup based by former early workers at Revolut, has deepened its partnership with U.Okay. challenger financial institution Starling so as to add Flux-powered loyalty factors to Starling’s cellular banking app.
It builds on earlier Flux integration that sees Starling help item-level digital receipts powered by Flux and supported retailers (thus far, this consists of all 111 EAT shops within the U.Okay. and Bel-Air).
Right here’s how the brand new loyalty performance works: When you’ve enabled Flux inside the Starling app, you merely spend at supported retailers utilizing Starling and any loyalty rewards you earn are robotically displayed in your Starling account alongside a totally item-level digital receipt. After you might have accrued sufficient loyalty to qualify for a free merchandise, Flux will ship cash-back to your Starling account on behalf of the Flux retailer.
The concept is to make loyalty stamps digital in the identical manner as receipts, which not solely reduces cumbersome use of paper, but additionally accelerates the checkout course of and makes loyalty one thing you — because the buyer — by no means have to actually take into consideration.
This tallies with analysis undertaken by Deloitte, which Flux is citing, that claims though 41 p.c of U.Okay. shoppers use model loyalty schemes, an estimated 10.three million individuals possess unused loyalty factors which complete greater than £four.5 billion.
(After all, if everyone did redeem their free objects, you need to surprise what the web impact on the loyalty schemes on provide can be, however that’s in all probability a dialogue for a distinct day).
Now in fact, Flux/Starling isn’t the primary to supply digital loyalty, even for in-store versus on-line purchases. Card linking has been round for some time, with main banks additionally leaping on that bandwagon. In the meantime, providers like Yoyo Pockets are making a digital loyalty play by way of a bespoke app and cost technique (Yoyo has additionally built-in with Starling).
Nevertheless, what makes Flux attention-grabbing is the best way it needs to combine on the banking app degree so as to provide a consolidated view of your earned loyalty factors throughout all of your financial institution accounts.
This implies in concept that in the event you earn Flux factors with one financial institution card, they’ll be displayed in and may be redeemed from some other financial institution playing cards/accounts that you’ve got additionally linked Flux to. This small items, loosely joined method is on the very coronary heart of Open Banking and Flux’s long term technique as an FCA authorised AISP (Account Info Service Supplier).
The fintech startup is already working with Barclays and Monzo, along with Starling. I’m informed that offering consolidated views throughout funds accounts with enriched information is vital to Flux’s technique for the 12 months.