Credit card companies use artificial intelligence

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Credit card companies use artificial intelligence software to convince customers to use their credit card points. Those ways are redeeming their points for travel, dining, shopping or gift cards, with the goal of keeping those customers spending more and loyal to their cards.

Companies have used your past purchases to market you items for years. If you buy a tennis racket from Amazon, soon you’ll get ads from Amazon trying to sell you tennis balls.

Banks and other credit card companies always have eye on your spending and shopping. According to that information they send you related offers.

In the case of Maritz, the company sent marketing emails to 75,000 HSBC customers. A portion of customers received an AI-recommended particular category of credit card reward as travel, merchandise, gift cards or cash back.

“What we see is when people are more engaged with a rewards program they tend to spend more,” said Marcos Meneguzzi, head of cards at HSBC.

Other credit card companies have been using big data or artificial intelligence to predict where a customer will spend their money more. This can be advantage for the customers, as the more money customer spent in a particular category of merchant, the more offers they will get.

Wolfersberger expects credit card companies will be able to market specific gift cards to customers or even specific products. It also could be possible for credit card companies to adjust their entire reward programs based on changes in spending behavior as well.