Swiss bank PostFinance has partnered with Strands to implement an innovative online marketing platform, allowing merchants to target their customers more directly and with greater impact. CLO, or Card-Linked Offers, is Strands’ white label solution that has been integrated with the bank’s digital banking system “E-Finance”.
PostFinance is one of Switzerland’s largest banks, and as such is fully committed to keeping ahead of the innovation curve and thus, the competition. The bank initially selected Strands thanks to its award-winning, fully-integrated Personal Financial Management (PFM) solution they have called “e-Cockpit”, and subsequently for its cutting-edge CLO offering, allowing them to power their online marketing platform, “PostFinance Benefit”.
The launch of PostFinance Benefit is a novelty in Switzerland. Beat Bieri, Product Manager at PostFinance says: “At PostFinance, we are accustomed to being at the forefront when it comes to introducing new and groundbreaking digital products and services for banking customers in Switzerland. With PostFinance Benefit, we demonstrate our leading role as an innovative bank once again and underline our aim to become what we call a digital powerhouse. We are convinced, that with PostFinance Benefit, we offer relevant added value for our private and business customers.”
At a time when machine learning and data analysis are fundamental in creating products that provide a personalized solution to the end-user, CLO is a means for retail banking customers to receive and easily redeem context-based deals from merchants using targeted marketing software. The key here is relevance; machine learning algorithms unlock the power of data to generate contextual offers for a data-driven customer loyalty system.
Over time, the CLO engine learns a model that can predict the likelihood of a user purchasing a product or service and pre-empt their needs. PostFinance has named this platform “PostFinance Benefit” as both the bank’s business and private customers can benefit in numerous ways: increased sales and customer acquisition with little or no investment or prior marketing knowledge for merchants, and personalized offers for the customer, via desktop or mobile, eliminating the need for coupons or loyalty cards and avoiding any extra hassle. This results in a boost of card usage, thus increasing customer retention and engagement via digital channels.
By far the biggest benefit for banks is the new source of revenue. CLO allows banks to offer added value service to their SME clients, who can pay a fixed price per contact and based on the marketing strategy or a variable amount based on sales. Furthermore, this solution enables an engaging SME Banking strategy. SMEs can generate a closer relationship with their bank and share more information about their business, helping the bank gain a deeper understanding of their needs and individual circumstances.
Ivan Tarradellas, Product Manager at Strands sums up the experience: “Creating PostFinance Benefit has been both challenging and thought-provoking. Teams from both Strands and PostFinance have learned a lot from each other and did a great job in finding cutting-edge solutions together, challenging the status quo. Seeing PostFinance clients use PostFinance Benefit makes me feel very proud of all the work we have accomplished over the last few years.”