The decline of the free checking account has been accompanied with a decline in rewards programs, as banks maintain they can no longer finance such programs in the wake of various reform measures. But one financial services web start up thinks that rewards programs have a bright future at banks, provided they take a fresh look at what is rewarded.

While traditional programs rewarded the use of debit or credit cards, San Francisco-based SaveUp is offering a turnkey solution that allows banks to offer a rewards program that pays benefits for positive behavior, like paying down debt or adding money to a savings account. Bank Systems & Technology notes that the company also offers programs that allows banks to customize offerings for a fee.

Bank of the West has embraced a pilot program and thinks the marketing benefits are in line with the times. It is using social media heavily to tout its new program. It's unclear whether more banks will sign on to the program, which requires little activity on their part, as it is all effected over the SaveUp web site.

The startup is certainly a breath of fresh air. In the wake of the Durbin amendment and the Bank of America fee back-down, too many banks are taking a defeatist attitude. They would be better served by a can-do attitude to discover new marketing approaches and new services that will justify higher fees. We need more of this sort of thing.

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