Comperemedia’s Chief Insights Officer, Andrew Davidson is well known for sharing the latest insights on financial services products and marketing strategies/innovations on his LinkedIn, as an event speaker and as a host on Mintel’s Little Conversation podcast. In this bi-weekly recap, he will provide you with the latest news and insights happening in the financial services industry.
Here are the 5 things you need to know:
1. Interview with Kelley Halpin: Co-founder and CEO of Mesa
I sat down with Kelley Halpin, co-founder and CEO of Mesa, to discuss the launch of the Mesa Homeowners Card—a groundbreaking fintech credit card that rewards members for their mortgage payments.
For many, the mortgage is their largest monthly expense, and Mesa’s innovative approach to rewarding this category could be a game-changer for the industry.
I first posted about the launch of the Mesa Homeowners Card when it announced its waitlist in November 2024. Now, in this episode of the Mintel Little Conversation podcast, we go behind the scenes to uncover the strategy and vision driving this exciting product.
💡Is this the credit card homeowners have been waiting for?:
- Untapped Potential. By rewarding consumers for their mortgage payments, Mesa is tapping into an uncharted space with the potential to deeply resonate with homeowners. The challenge now? Building awareness and reaching the right audience. If they succeed, Mesa could transform the market. I can’t wait to see how this business grows!
- The race is on. Since my interview with Kelley Halpin, Ankur Jain, the founder of the Bilt Rewards Mastercard (and previous guest on the Mintel Little Conversation podcast) – which allows users to earn rewards on rent – has revealed that Bilt is also now working on offering rewards for mortgage payments. With new credit card offerings seemingly on the horizon, the competition to revolutionize mortgage rewards is officially underway. While Mesa was first to market and holds an early lead, Bilt has built a strong foundation among renters, many of whom are likely eyeing their next step: homeownership.
2. Sanders & Hawley introduce a bill to cap credit card interest rates
Who Wins and Who Loses in a 10% Interest Rate Cap World?
Talk about WHIPLASH! The new administration pressed PAUSE on the CFPB’s agenda to cap credit card late fees. Before the card industry applause had subsided, Senators Josh Hawley and Bernie Sanders introduced a bipartisan bill to cap credit card interest rates at 10%, something that President Trump had proposed as a candidate.
A government-mandated cap of 10% on interest rates would shake the financial ecosystem to its core. Some would thrive, while others would face serious challenges.
🏆 The winners:
- Low-Risk Consumers. Great credit scores are the golden ticket here. These borrowers could see reduced costs on loans while maintaining easy access to financial products. Responsible credit behavior would pay off—literally.
- Charge Cards. No interest? No problem. Charge cards, which rely on full-balance monthly repayment and annual fees, would surge as a reliable, interest-free option for financially disciplined users.
- Buy Now, Pay Later (BNPL) Services. Already thriving on no-interest short-term installment plans, BNPL providers could become a go-to alternative in a market where traditional consumer credit tightens.
- Credit Unions. Member-focused credit unions, already offering competitive interest rates under 10%, would see increased demand. Their low-rate credit cards and personal loans could become even more attractive.
- Innovative Credit Products. Expect to see a rise in fee-based credit models, hybrid credit-debit cards, and subscription-based lending options—all designed to circumvent tight margins while offering consumers flexibility and transparency.
🚩 The losers:
- High-Risk Consumers. The toughest challenge lands here. With lower profit margins, lenders may tighten the reins on credit approvals, cutting off borrowers with poor credit scores or limited credit histories. Alternatives like payday loans or no traditional credit access could exacerbate the gap.
- Lenders. Banks and traditional lenders reliant on interest income would feel the squeeze. A 10% cap would cut into profits, forcing them to rethink their models and, in some cases, scale back products offered to higher-risk customers.
- The Broader Economy. This is the wildcard. Reduced profitability for lenders may lead to stricter lending terms. Fewer approved loans? Slower business expansion, lower consumer spending, and potential ripples through the job market. The effects could hinder economic growth rather than promote financial inclusion.
3. Bilt Rewards launches a café
Bilt opened its first BRANCH! (I mean café 😉).
Last week, Bilt Rewards, in collaboration with Maman, unveiled the first Bilt Neighborhood Café at 31 Bond Street in Manhattan.
Designed as a “hub for inspiration and connection,” Bilt members can earn 8X points on coffee, pastries, and sandwiches.
Leading up to Rent Day (Feb 1), members received emails offering a complimentary coffee and cookie to sweeten the deal.
💡A new kind of branch network?
- Horizontal loyalty. Bilt is rethinking loyalty by leveraging its program to create innovative partnerships, like this exciting diversification into a café with Maman. It’s a natural extension when you consider how travel-focused cards build lounge networks at airports, while Bilt focuses on delivering rewards and benefits for renters in their local neighborhoods.
- Café/branch. This café isn’t just a fun experiment—it’s a bold reimagining of what a loyalty program can be. Capital One has already proven the power of blending physical spaces with customer engagement through its 50+ Capital One Cafés nationwide, which redefined the traditional bank branch. Bilt is taking this concept further by creating spaces that feel personal and local, tailored to members and their communities. In emails to members, Bilt hinted at plans to bring more Bilt Neighborhood Cafés to other cities and even encouraged members to reply directly to founder and CEO, Ankur Jain, with suggestions for future locations. Could this be the start of a new kind of “branch” network?
4. Openbank reaches a significant milestone
🚀 Campaign Incoming!
Santander has announced that Openbank, its U.S. digital bank launched in Q4 2024, has already hit $2 BILLION in deposits.
Now, it’s rolling out its 2025 campaign, “You’re Smart Like That”, promoting a High Yield Savings Account with a 4.75% APY (just a $500 minimum deposit)—one of the best rates on the market.
Paid social ads promoted 10x the national savings rate at Openbank, while at the same time, Santander stepped up its auto loan acquisition activity in direct mail.
💡Revving upp: Santander’s bold move to drive U.S. growth:
- DRIVE to auto. Santander’s U.S. strategy is clear: grow national deposits to fuel its auto lending franchise and transform its Retail Bank. With the auto loan market poised for growth, Santander, a leader in auto lending, is positioning itself to seize the opportunity.
- “You’re Smart Like That”: The campaign is rolling out across out-of-home, digital, and social channels. The value prop? A fintech-like high APY and seamless digital experience, backed by the trust of a global bank. As Openbank marketing ramps up, expect to see Santander’s auto loan marketing follow suit, aligning with its broader business strategy.
- More to come. Openbank is set to expand into eight northeast states soon, with plans to launch new digital capabilities and products—like CDs, Payments, and Checking Accounts—in 2025 and beyond. While new to the U.S., Openbank has a proven track record in Europe and Mexico, offering a glimpse of what’s to come. In its Q4 2024 earnings presentation, the company revealed that it had acquired 60K Openbank customers since launching in Q4.
Source: Santander Q4 2024 Earnings Call
5. Wells Fargo offers cash back on drones
Drone. Drone? 😕
“Explore earning 2% cash back rewards on a new drone.”
This drone video ad for the Wells Fargo Active Cash Credit Card first appeared in October but has been popping up on YouTube more and more from November through January, according to Comperemedia.
I don’t think I’ve ever seen a drone used in a credit card ad, so I had to dig in.
💡Standing out from the crowd:
- Mystery drones story solved? There has been a lot happening recently, but you may recall the “mystery drones” story that broke during the holidays. The story caused a surge in people searching for “drones” on Google and a spike in customers looking for drones in stores leading up to the holidays. Interestingly, Wells Fargo’s drone ad dropped before the mystery drones story broke and then ramped up throughout. I’m not a conspiracy theorist, but… 😂 Now that would be a guerilla marketing campaign on steroids!
- Drone targeting. Drones are a niche, but growing interest in the U.S., with around a third of consumers saying they’ve used them. While drones might not be the first product you associate with marketing a 2% cash back credit card—especially in a time when consumers are more focused on the price of eggs—the ad placement makes sense if it was targeted to hobbyists, photographers, and tech enthusiasts on YouTube. It’s a bold move, but maybe that’s the point: standing out in a crowded market. It certainly caught my eye.
