Cardlytics may have found itself in the sweet spot of a market born of regulatory reform. Recall that Dodd-Frank's Durbin Amendment, the Credit Card Reform Act of 2010 and other laws crimped fees and made rewards programs less justifiable in terms of cost. The result is that banks are hungry for solutions to drive customer usage and replace rewards programs.

Atlanta-based Cardlytics, co-founded by a former Capital One executive, aims to make a splash with its platform that places ads in online bank accounts as a way to drive business.

The firm characterizes itself as a pioneer whose "technology tracks consumers' actual purchases, providing the first digital channel that can guarantee offline sales and help consumers realize savings of hundreds of dollars per year on the products they purchase every day. The rewards improve consumers' banking behavior by increasing usage, reducing attrition and strengthening engagement with online banking."

Cardlytics is confident it can demonstrate the ROI of its approach, although it's unclear if such activity will result in a direct payoff for banks.

It might best be seen as the next generation rewards program, which are becoming unpopular in the wake of financial reform.

As of now, it's uncertain whether this will take off. However, the Washington Post notes several banks are testing it out. Regions is the largest bank that has announced a partnership with Cardlytics. McDonald's and Macy's are among the early advertisers.

For more:
- here's the article

Related Articles:
Banks roll out ads in online checking accounts
How Bank of America might break even on Durbin Amendment
Does TCF's debit card suit stand a chance?