The devotion of die-hard fans of celebrities and sports franchises lies in the upper echelons of brand loyalty. Reward systems for honoring their steadfast allegiance have been long-existing across several junctions, including financial services. So, what makes a blockchain-powered reputation exchange system different from its predecessors? Let’s find out.
What does a Reputation Exchange Offer?
In the age of excess information, retaining consumer attention is one of the hardest marketing challenges, especially in the competitive fintech/financial services industry. The reputation exchange offers these institutions a chance to attract new customers using the brand value of renowned celebrities or sports franchises.
End-users receive an official association with their favorite brands and celebrities in addition to exclusive offers and discounts on purchases. While the financial services segment receives a boost in their consumer numbers, celebrities or sports franchises earn an opportunity to tokenize the brand reputation and grow their popularity through increased engagement. The reputation exchange can be utilized to issue limited edition gift cards in limited numbers, which can be easily accessed across areas where the financial service provider can offer its services.
Notable Examples of Reputation Exchange Use
The reputation exchange mechanism is widely used across European football clubs, Formula 1 Race teams, and more. Prominent examples include football clubs AC Milan, Torino FC, Borussia Dortmund, Granada CF, AS Roma, as well as Formula 1 race team Alfa Romeo Orlen. The reputation exchange enables the use of prepaid cards or limited edition cards for purchasing products across the region, with access to exclusive merchandise and goodies.
Also Read: Blockchain Digital Signatures to Disrupt the E-Signature Space
How Does Blockchain Come into the Picture?
The inherent characteristics of the underlying blockchain technology facilitate real-time digital payments with lower processing charges. Since transactions are recorded throughout the blockchain’s distributed ledger after consensus, the data stored is accurate and tamper-proof. Updates are available in real-time, and the absence of transaction intermediaries optimizes processing costs.
Blockchain technology is being perceived as a game-changer across the entire financial sector due to the multiple features it has on offer. Most of the major financial institutions across the world have already incorporated blockchain, or currently undergoing implementation across their network. The revolutionary technology is the underlying architecture of cryptocurrencies which has steadily acquired mainstream relevance over the past few years. Blockchain has also proven to be very effective in loyalty reward programs, supply chain management, and data management. A recent Gartner survey indicated that 6 out of 10 CIO respondents have already implemented blockchain, or are thinking about its integration into their existing structure.
Fortune Insights report the global blockchain market will leapfrog from US$ 7.18 billion to US$163.83 billion between 2022 and 2029 at an astounding CAGR of 56.3%. The banking and finance sectors have been the most significant adopters of this groundbreaking technology initially designed as the architecture for alternatives to fiat denominations. A blockchain-powered reputation exchange provides benefits to all the parties involved- the financial service providers, the consumers as well as celebrities, brands, and sports franchises.