BMO Replaces Air Miles with New ‘Blue Rewards’ Loyalty Program

BMO Financial Group has announced a major change for its loyalty program customers. The bank is ending its long-standing partnership with the Air Miles program. In its place, BMO will launch a new, proprietary rewards platform called ‘Blue Rewards’. This new system is set to go live in the summer.

For general investors, this move highlights a growing trend among major financial institutions. Banks are increasingly bringing key customer engagement programs in-house. This shift allows them to have more control over data, customer experience, and program costs. It represents a strategic investment in deepening direct relationships with clients.

Automatic Conversion for Existing Members

The most immediate question for current members is about their existing points. BMO has stated that the transition will be seamless for collectors. All existing Air Miles balances linked to BMO accounts will automatically convert to the new currency, called ‘Blue Points’.

Members will not need to take any action to transfer their points. The bank promises that the value of their rewards will be preserved during this conversion. This is a critical detail for maintaining customer trust during a significant program overhaul.

Features of the New Blue Rewards Program

According to BMO, the Blue Rewards platform is designed to be simpler and more flexible. A key focus is on a streamlined booking experience for redeeming points. Many loyalty programs face criticism for complex redemption rules, so a simplified process could be a competitive advantage.

Furthermore, the bank is expanding the ways members can earn points. The new program will specifically offer enhanced earning opportunities on everyday spending categories. Groceries and fuel purchases are highlighted as areas where members can accumulate Blue Points faster.

This shift towards rewarding everyday essentials aligns with consumer demand for practical rewards. It moves beyond travel-focused redemptions to offer more immediate value for daily life.

Strategic Context and Market Trends

BMO’s decision to move away from Air Miles follows similar actions by other retailers in recent years. The loyalty program landscape is highly competitive and costly to operate. By creating its own program, BMO gains direct insight into customer spending habits.

This data is incredibly valuable for tailoring financial products and marketing offers. For investors, a successful loyalty program can increase customer retention and spending on BMO credit cards. It turns a cost of partnership into a potential driver of revenue and engagement.

The success of this transition will depend on execution. BMO must ensure the Blue Rewards platform is truly user-friendly and offers compelling value. If managed well, it can strengthen the bank’s brand and customer loyalty in a crowded financial market.