Page 37 - Banking Finance July 2025
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ARTICLE





         Loyalty,


         Reimagined: How



         Banks Are Using AI



         to Win Hearts, Not                                                                         Vikas Shah


                                                                                                      Co-founder
         Just Wallets                                                                           BigCity Promotions







           AI and machine learning are enabling banks to identify micro-communities within their customer
           base like young professionals, gig workers, or new parents and create engagement experiences
           tailored to each cohort.



         I    n India's rapidly evolving financial landscape, the battle  triggering a celebratory experience, or detecting travel
              for customer loyalty has never been fiercer. Traditional
                                                              intent and offering personalized assistance, are just the
              banks are no longer just competing, they're up against
         agile neobanks and FinTech's that offer seamless, hyper-  beginning.
         personalized  digital  experiences.  In  2025,  retaining  By mapping life moments and combining them with timely,
         customers is about much more than points and perks; it's  well-crafted incentives, banks move from being mere service
         about building deep, meaningful relationships powered by  providers to emotional allies ensuring that every nudge,
         technology, empathy, and creativity.                 perk, and surprise is anchored in context, not guesswork.
                                                              So, when customers feel understood and rewarded in
         While most industry conversations focus on AI-driven  moments  that  matter,  they  form  stronger emotional
         personalization  or  legacy  loyalty  systems,  the  real  connections and are far less likely to churn.
         breakthroughs lie in how banks are combining intelligent
         insights with unconventional strategies and experience-led  Unlocking Micro-Segments for Deeper
         engagement. The future belongs to those who understand
         that retention is emotional, not just transactional.  Wallet Share
                                                              AI and machine learning are enabling banks to identify
         Powering Card Spends with Precision AI               micro-communities within their customer base like young
                                                              professionals, gig workers, or new parents and create
         Targeting                                            engagement experiences tailored to each cohort.

         The future of loyalty isn't about blanket offers or static
         reward points it's about relevance. Banks are now using AI  Instead of focusing solely on individual rewards, some banks
         to understand not just what customers spend on, but why  are introducing collaborative saving goals, referral clubs, or
         and when. Recognizing a customer's first salary credit and  purpose-led gamified campaigns. These initiatives tap into

            BANKING FINANCE |                                                                  JULY | 2025 | 33
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