Commonwealth Bank overhauls loyalty program with new Yello points

Commonwealth Bank has announced a major overhaul of its loyalty program, introducing a new in-house currency called ‘Yello’ points. The shift comes ahead of an October ban by the Reserve Bank on credit card surcharges, a reform expected to reduce bank revenues by approximately $660 million annually.

Under the new structure, the bank is pivoting toward Virgin Velocity points, offering more generous conversion rates for Yello points compared to Qantas Frequent Flyer points. The bank is also adjusting how points are earned: customers with a single credit card will receive fewer points, while those who bundle multiple products, such as mortgages or term deposits, will receive more.

Angus Sullivan, head of the bank’s retail division, stated the change aims to allow more than nine million customers to earn rewards through everyday banking activities, including home loans, savings, and insurance.