Barclays CMO on Co-Brand Card Strategy & Growth

Barclays has cemented its position as a major player in the U.S. credit card market over the past two decades, largely through its distinctive partnership model. Celebrating 21 years since its acquisition-led entry, the British bank's U.S. operations now boast 20 million customers and approximately $32 billion in net receivables as of 2024. This growth was underscored by its recent move to replace Goldman Sachs as General Motors' credit card issuer, a portfolio Barclays had pursued for years before Goldman snapped it up in 2020. Lili Tomovich, Barclays' Chief Marketing and Experience Officer, recently sat down with Banking Dive at the Money20/20 conference in Las Vegas to discuss the enduring importance of this partnership strategy and how it drives customer engagement and innovation.

The Power of Partnership in a Competitive Landscape

Tomovich emphasizes that Barclays' consumer bank thrives on its partner-based business model. By collaborating with leading American brands in travel, hospitality, and retail—such as JetBlue, Frontier, Wyndham hotels, Carnival Cruise, Gap, and Xbox—Barclays offers co-branded credit cards that resonate deeply with consumers. "We actually deliver a product that consumers have a vested interest in," Tomovich explains, noting that cardholders are often already loyal to these brands. The bank's primary focus is ensuring a seamless digital experience, where products deliver expected value, payments are easy, and rewards are readily accessible. The experiential side, she adds, is often enhanced by their brand partners.

Strategic Partner Selection

Barclays adopts a highly strategic approach to selecting its partners, categorizing them into key verticals like travel and hospitality (airlines, cruise lines, hotels) and retail. This includes all four Gap brands and Xbox. Tomovich highlights the importance of a balanced portfolio, stating, "We would never want to have all of our partners in retail or all of them in travel. It's about having a balanced portfolio." This diversification helps mitigate risks and broadens market reach.

Deepening Customer Engagement

For Barclays, deepening customer engagement means leveraging the strong relationships cardholders already have with their chosen brands. "I'm only getting a Carnival Cruise card or a JetBlue card or Gap card because I like the brand," Tomovich states. The bank's role is to provide timely and relevant offers that enhance the customer experience. For instance, during back-to-school season, Barclays might offer four times points on Gap purchases, making the credit card a more valuable tool for loyal shoppers. This continuous evaluation of benefits extends to dining, shopping, and broader experiences, ensuring the value proposition remains relevant to customers' lifestyles.

Anticipating Needs Through Innovation

To stay ahead, Barclays prioritizes understanding consumer sentiment through extensive qualitative and quantitative research. Tomovich stresses the need to anticipate future trends: "We have to be five steps ahead, because oftentimes consumers don't know exactly what they want." This forward-thinking approach is crucial for identifying new ways to add value for both partners and cardholders.

Barclays' Innovation Lab (iLabs) plays a pivotal role in this process. Tomovich describes "hackathon-like" events where cross-functional teams from Barclays and a partner collaborate for two to three days to conceptualize new products or refresh existing value propositions. This rapid ideation process, often employing design thinking methodology, has led to significant innovations. A notable example is the Breeze Airways card, which emerged from iLabs with a completely digital-first model, eschewing physical paper applications for a seamless online experience.

The Appeal of Low-Cost Airline Partnerships

Barclays' partnerships with lower-cost airlines like Breeze, Frontier, and JetBlue are strategic, targeting a significant segment of the American population. Tomovich explains that these airlines serve "middle America" and often cater to smaller, underserved markets. "Most people aren't looking for business class on American Airlines—the average consumer is looking to fly low cost on Frontier and Breeze," she notes. These partnerships are a powerful driver for customer acquisition, as consumers are motivated to get co-branded cards to earn redeemable points. Furthermore, Tomovich reveals a key industry insight: "The credit card program is the No. 2 revenue driver for any airline." This makes such collaborations mutually beneficial, fueling growth for both Barclays and its airline partners as they expand their networks.