Muscle Points was founded in 2018 by senior banking executives and technology experts. Backed by leading VC funds and family offices, the company developed Patented Artificial Intelligence technology to optimize point redemption process for retail banks. Combining cardholder behavioral data with supplier margins and demand, the model can predict redemption behavior and adapt it in real time to cardholder transactional efficiency based on Behavioral Economic principles.The founding team and board of directors have a strong history of leading financial institutions as well as technology firms that have been acquired/invested by Microsoft, Intel Corporation and General Electric Financial.
The client, a leading retail bank in the LATAM market is in the process of strong growth and expansion. The year prior to the arrival of the Muscle team, the bank made a great effort by launching a new range of products focused on loyalty and rewards benefits for its clients. The loyalty program has been a success in terms of active users and adaptivity, but extremely costly in terms of profitability due to low prices, the abundance of promotions and lack of measurement of the campaigns and the high cost per point redeem.
The project was executed on the client's premises within 6 weeks of roll out integration and on going support. The team was composed of a senior and mid developers supervised by a lead developer and a full-time Product Owner.The client was fully committed to the project from day one, assigning contact persons in the different areas and providing direct access to key people of the financial area and product area. A senior product manager from the bank was defined as project manager from the banks side facilitating team access to the stakeholders in the bank and providing key information.During the 6 weeks time period, 2 presentations were held to the steering committee, composed by directors of the different areas: Business, Marketing, and Technology. In total 2 AI-driven solutions and 4 APIs were seamlessly integrated. Each presented as a sole standing business case, analyzing the potential strategies from all aspects, to facilitate the banks decision process as much as possible.High value clients were enganged and increased redemption rate by 50%.
MUSCLE managed to obtain instant results for the client after the integration was completed. Within two weeks of our first roll out additional savings were already being generated for the client and redemption rate increased.We have reached a Net Promotor Score of: 8.2 within 6 months of integration. We have increased credit card purchasing volume by 18% surpassing the expectations of our client significantly.
MUSCLE strategy generated an additional 3.2% increase in conversion rate. As our strategies do not generate any additional cost effects, the effect on the conversion rate is much higher.The willingness of the bank to allocate resources to the project and to move quickly was a key success factor for this project.
Muscle integration roadmap facilitates to the bank a quick and easy overview of the process. Allowing all team members to understand and execute the process accordingly.
