Why 62% of GCC loyalty points go unredeemed — and what it costs your bank

Across the GCC, a striking share of loyalty currency simply never gets used. Industry estimates put unredeemed points as high as 62% in some programmes — value that sits on the balance sheet as a liability while doing nothing for engagement.

The redemption gap

The root cause is friction. When redemption means leaving the banking app for a dated, separate portal, customers disengage. 87% of bank-app sessions are transactional only — people check a balance and leave before ever discovering their benefits.

Customers don’t think about points. They think about what points buy them — an upgrade, a dinner, a remittance home.

Embedded redemption changes the maths

When redemption is native to the banking experience, engagement rises 3–5× versus a redirected portal. Shorter journeys mean higher burn rates, which in turn reduce the outstanding liability while deepening the customer relationship.

• Lower liability from unredeemed points
• Higher card spend and activation
• New revenue from merchant commissions

The banks winning this decade are turning benefits into a habit — embedded, contextual, one tap.