HSBC is in the process of developing an AI rewards program that will use predictions to better personalize offers for customers.
The new rewards program from the London-based bank aims to create an improved experience for credit card users by predicting how they may choose to redeem their points. As such, the artificial intelligence system will be able to market the offerings in categories—like travel, gift cards or cash—accordingly.
HSBC conducted a test by sending out emails to 75,000 cardholders based on AI recommendations and found that "of those who received the email and redeemed rewards, 70 percent did so in the AI-recommended category and the number of opened emails increased 40 percent." In partnership with loyalty program provider Maritz Motivation Solutions, HSBC is set to make it easier for consumers to redeem the rewards that are most relevant to them.