Announcing TAB Flow: Banks enter the ownership economy
By David Nelsen
I am so excited today to announce our newest banking partnership is available for waitlist sign up! Today, the incredible, innovative team at TAB Bank announced their new TAB FLOW checking accounts — a checking account and debit card that offers customers fractional stock rewards of up to 1% on every eligible purchase, among many other consumer-friendly features.
TAB leverages the Bumped platform to power those automated stock rewards, and we could not be happier that all of their hard work is now accepting sign ups. If you’re one of the many folks who expressed interest in a bank that automatically rewards in ownership (more on those numbers later) — check out the details here!
They are launching both a free and paid level checking account to ensure everyone has access to a safer, simpler way to start investing, along with a lot of other industry-leading banking tools.
The role of ownership in a banking relationship
Powering financial institutions to reward their customers in fractional shares of stock has been a part of the Bumped vision since we launched in 2018. Banks play a pivotal role in many major milestones during a customer’s journey—first jobs, saving for big goals, taking charge of their future. But those banks didn’t always know how to move from being a transactional partner to building a true relationship with their customers — a partnership that evolves over the course of their literal and financial lives.
That’s where Bumped came in. We looked beyond brands, at being a holistic loyalty platform that helps build deeper connections, drive the customer behaviors that matter most, and introduce a bank’s customers to the right products at key moments, in the most compelling way. Rewarding your customers in stock is a way to literally invest back into the relationship. Banks like TAB that are willing to help their customers go from simply spending to ‘spend-vesting’ (as they have named it) are showing commitment to a lifelong partnership.
We knew that by introducing customers to the stock market early, banks could better support their long-term financial aspirations. But, after seeing how strongly users responded to becoming owners of their favorite brands we wanted to know — what do their customers want from their bank when it comes to ownership?
What customers want from their financial institutions
Turns out, customers want the same thing — trust, connection, and the ability to grow together.
When we surveyed Bumped users, they told us that if their financial institutions gave them the chance to be rewarded in ownership rather than traditional rewards, they’d be interested. By the numbers…
- 89% of folks said ownership is more exciting than traditional rewards
- 91% of them would rather receive stock rewards than air miles
- 73% would rather receive stock rewards than cash back
- And almost 80% of said they would participate if their bank offered them the chance to be rewarded in stock
Of course, we didn’t just take our users’ word for it, we sought out data that could help us and our partners understand the true opportunity of rewarding banking customers in stock. Across the Bumped pilot we saw a near 20% increase in monthly spend and 14% increase in transactions on rewarding cards.
These numbers mean nothing without the intent behind them. A better, more aligned relationship with the organizations that power our day to day lives. Consider the events of the last year — meme stock mania, the rise of the retail investor, and a new energy about everyday people participating in the stock market. These users are hungry for opportunity, access, and education. Who better to provide clarity, guidance, and user protections than the financial institutions they already trust?
The opportunity ahead
Banks are in unique positions to offer anchoring support for customers long-term, beginning early, and I’m so grateful to TAB Bank for seeing that vision and being an incredible partner along the journey.
It’s also no surprise to me that a mid-size, digital-first bank was the first traditional banking partner to get this technology across the finish line. Innovation in the banking industry can take a long time to be adopted and introduced — typically not through the fault of the major banks. Keep in mind, these institutions were built upon (sometimes antiquated) systems that depended on physical servers or even paper batch processing. All the more reason to start the work now.
And to TAB Bank, and the other financial institutions working to evolve to the needs of their customers, to create a stronger, more equitable, and more accessible financial system for all — cheers. Let’s go do some good.