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Personalisation breeze drives portfolio growth for leading financial institution

A leading issuer in the Middle East realised immediate time-to-value from personalisation by optimising spend with tailored offers for each cardholder. Learn how Mastercard’s proprietary spend insights, combined with Dynamic Yield’s AI personalisation, delivered this revenue-generating campaign with minimal implementation lift in just 3 months.

Industry

Financial Services

Capability Used

Personalisation Breeze

+30% card portfolio growth

by targeting predicted luxury spenders with premium card incentives

+60% increase in card transactions

in travel categories from personalised offers

Introduction

Consumers today are surrounded by personalisation, expecting nothing less than a frictionless, tailored experience in every digital interaction, including with their bank. Businesses that meet the demand for personalisation reap the rewards across every stage of the customer journey. This is why over 8 in 10 financial institutions (FIs) acknowledge that personalisation is a clear priority for their business.

Though banks have come to understand that consumers reward personalised digital experiences, pervasive industry challenges like compliance, inactionable data, complexity of integration and limited internal resources have made the benefits near-impossible to achieve.

As a result, only 21% of bank customers today report receiving tailored offers and content from their banks, leaving a huge opportunity gap for personalisation.

To solve these challenges and realise quick time to value, a leading Issuer in the Middle East selected Personalisation Breeze from Dynamic Yield by Mastercard to deliver personalised messages with tailored offers individualised to their cardholders.

The Challenge

Meeting consumer personalisation expectations within a regulated industry

Before Personalisation Breeze, this issuer, like many financial institutions, faced specific challenges that made it difficult to realise its vision for personalisation. The first challenge was their data. Transactional cardholder data is complex and difficult to standardise for actionable use. Generating predictive insights from this data is also challenging, as it requires advanced machine learning models and data science expertise, which most issuers don’t have in-house.

Second, implementing any new system in the financial sector, especially for personalisation, is an uphill and time-consuming battle due to strict regulations and intricate internal processes. Navigating this and operating new technologies, typically requires new resources that FIs may not be able or prepared to support.

This issuer bypassed its challenges with Dynamic Yield by Mastercard’s unique solution, Personalisation Breeze. In this case study, we’ll walk through how Personalisation Breeze drove a significant increase in cardholder spending for this issuer in only three months.

Execution

Mastercard’s prediction models unlock new ways for FIs to optimise spend with minimal lift

Looking to provide its customers with more relevant offers and stimulate card spend across categories, this Issuer began searching for a solution that would enable it to better engage its cardholders quickly, without requiring complex integrations or needing to hire additional resources to manage a personalisation programme. This meant finding a solution that would allow them to assess and tap into customer spend and predictive insights that could help them guide users toward services and offers that suit their precise preferences and needs.

The Issuer found their ideal solution in Personalisation Breeze. With hands-free operation eliminating the need for continuous maintenance, the Issuer realised immediate time-to-value, optimising card spending and engagement. Leveraging over 112 billion transactions to predict where cardholders are most likely to spend next, Mastercard’s propensity models delivered unparalleled prediction accuracy to Dynamic Yield’s personalisation engine, seamlessly matching the right offer to each cardholder.

Targeted incentives for different spend categories

To help optimise travel spend, Mastercard’s AI models identified cardholders with a high propensity to spend on travel. Dynamic Yield by Mastercard leveraged these insights into personalised emails that matched the most relevant booking incentive to each cardholder predicted to travel.

Cardholders who have a high propensity to spend on travel were sent specific communications and offers for this category.

After 3 months, this campaign for travel spending resulted in a 60% increase in travel transactions and an average uplift of $151 per cardholder in travel categories in only 3 months.

Tailored communications for high-spending luxury cardholders to upgrade

One of the key objectives for this Issuer was to acquire more cardholders for its premium portfolio. To achieve this, Mastercard’s proprietary AI models identified high-spending luxury customers who were most likely to upgrade to the premium card.

Using Mastercard’s spend propensity model, the Issuer sent targeted incentives to high-spending luxury customers who were most likely to sign up for their platinum card offering.

Using these insights, Dynamic Yield by Mastercard created an automated programme to trigger emails on behalf of the Issuer, informing customers about the benefits of upgrading. This campaign generated a 30% increase in the growth of the premium portfolio in only 3 months.

Stimulating spend in everyday categories

The Issuer also identified low-spending cardholders and sent incentive campaigns for offers in everyday categories such as food and fuel.

Mastercard’s models also identified cardholders with low spending in everyday categories. To help the Issuer motivate these low-spenders, Dynamic Yield by Mastercard developed an individualised email campaign with tailored incentives in categories like fuel and groceries, driving a 15% increase in everyday transactions and an incremental uplift of $2,388 additional spend per cardholder, every year.

The Key Takeaway

In just 3 months, the Issuer saw a $3.4M increase in card spend after Dynamic Yield introduced personalised campaigns to cardholders, powered by Mastercard’s proprietary spend insights. This minimal-implementation solution provided a scalable approach to realise immediate time-to-value for the Issuer.

With Personalisation Breeze, issuers can focus on their core business with the confidence that their campaigns are fully GDPR compliant, require explicit consent and no PII is shared - all while Mastercard’s insights and Dynamic Yield’s AI personalisation deliver revenue-generating campaigns for the bank.

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