Personalization Breeze drives portfolio growth for leading Financial Institution

A leading issuer in the Middle East realized immediate time-to-value from personalization by optimizing spend with tailored offers for each cardholder. Learn how Mastercard’s proprietary spend insights, combined with Dynamic Yield’s AI personalization, delivered this revenue-generating campaign with minimal implementation lift in just 3 months.
+30% card portfolio growth
by targeting predicted luxury spenders with premium card incentives

+60% increase in card transactions

in travel categories from personalized offers

Introduction

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

Though banks have come to understand that consumers reward personalized 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 personalization.

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

The Challenge

Meeting consumer personalization expectations within a regulated industry

Before Personalization Breeze, this issuer, like many financial institutions, faced specific challenges that made it difficult to realize its vision for personalization. The first challenge was their data. Transactional cardholder data is complex and difficult to standardize 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 personalization, 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, Personalization Breeze. In this case study, we’ll walk through how Personalization 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 optimize 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 personalization program. 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 Personalization Breeze. With hands-free operation eliminating the need for continuous maintenance, the Issuer realized immediate time-to-value, optimizing 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 personalization engine, seamlessly matching the right offer to each cardholder.

Targeted incentives for different spend categories
To help optimize travel spend, Mastercard’s AI models identified cardholders with a high propensity to spend on travel. Dynamic Yield by Mastercard leveraged these insights into personalized 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 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.
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 individualized 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.

The Key Takeaway

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

With Personalization 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 personalization deliver revenue-generating campaigns for the bank.

Ready to experience the future of banking? Learn more about Personalization Breeze here.

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