Banks have come to understand that consumers reward tailored digital experiences with their wallets, and those that excel at meeting the demand for personalization see the benefits across every stage of the customer journey. Further, while even a foundational level of personalization can yield great results, the value grows exponentially as a company’s program matures. This is why over 8 in 10 financial institutions (FIs) acknowledge that personalization is a clear priority for their business.
However, the exponential revenue gains from personalization are increasingly difficult for banks to achieve today due to a number of common challenges pervading the industry, from compliance to sporadic and inconsistent data, the complexity of technology integration, as well as lack of internal resources and talent.
Given only 21% of bank customers today report receiving tailored advice or guidance when it comes to financial decisions, there remains a huge opportunity gap for personalization in Financial Services. But how can teams close it? Read on to learn more about how Dynamic Yield by Mastercard is making personalization a breeze and optimizing card spend for issuing banks, without the lift on their end.
Our new solution for issuing banks, Personalization Breeze, combines Dynamic Yield’s market-leading personalization offering with Mastercard’s propensity modeling to send individualized messages to cardholders that optimize spend and increase engagement. Dynamic Yield’s experts handle campaign execution, optimization, and maintenance, alleviating banks from tedious implementation and ongoing day-to-day operations, allowing them to focus on their core business — all while reaping the important benefits of personalization.
This offering is made possible with Mastercard’s proprietary AI models, which analyze more than 112BN transactions to predict where cardholders are more likely to spend next. Combine this with Dynamic Yield’s market-leading personalization technology for Financial Services that can target cardholders according to their historic and predicted spend, and deliver specifically curated and tailored incentives and benefits to individual customers, increasing relevance and optimizing card spend and engagement.
A leading bank in the Middle East aimed 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 these insights, Dynamic Yield by Mastercard created an automated program 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.
Other Issuers have experienced similar success. For one leading financial institution, Mastercard’s models identified cardholders with low spending in everyday categories. To help the Issuer motivate these low-spenders, Dynamic Yield by Mastercard developed a personalized 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, per year.
To help another issuer boost travel spend, Mastercard’s AI models identified cardholders with a high propensity to spend on travel. Dynamic Yield by Mastercard leveraged these insights in personalized emails that matched the most relevant booking incentives to each cardholder predicted to travel, resulting in a 60% increase in travel transactions and an average uplift of $151 per cardholder in travel categories in only 3 months.
As part of this solution, Issuers can select from a catalog of personalized campaigns crafted to optimize key performance indicators (KPIs) across the FI customer lifecycle, from acquisition and activation to retention. These campaigns can be executed across a range of channels, including email, in-app messages, app push notifications, and mobile content blocks, ensuring each interaction occurs on the channel most likely to capture cardholders’ attention.
For Issuers focused on acquisition, our solution can identify high-spending debit cardholders who would benefit from a credit card. By understanding the categories in which they are most likely to spend, we can send them an in-app notification linking to the most compelling incentive, thereby boosting credit card portfolio growth.
For those aiming to reduce attrition, we can target cardholders who have recently lapsed with personalized emails. Using Mastercard’s propensity models to determine where these cardholders are more likely to spend, we send tailored incentives in their most relevant categories, effectively winning them back.
The success of any personalization program hinges on the ability to monitor, measure, and report performance, ensuring we’re both delighting customers and achieving significant uplift. As part of this solution, Dynamic Yield monitors campaign performance across key digital and spend KPIs, such as click-through rates (CTR), engagement, spend, transaction count, and active card percentage.
These insights are compiled into a comprehensive Customer Program Scorecard, simplifying the process of sharing results with executive stakeholders.
Beyond sharing these insights, we leverage them to continually optimize the program and provide recommendations for additional use cases, unlocking even greater value from personalization.
With the entry barriers removed and the power of Dynamic Yield by Mastercard to deepen customer understanding, there’s nothing stopping financial institutions and issuer banks from delivering better personalized experiences to their customers. Those that capitalize on the personalization opportunity will stimulate spend and build deeper relationships with their customers in every interaction, quickly gaining wallet share over competitors who fail to do the same.
Learn more about how we’re making personalization a breeze for financial institutions.
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