Tarjeta Cencosud, one of the most important credit cards in Argentina, wanted to make the financial system more humane. We hacked the formula that defines people’s credit limit and added a new variable to it: generosity. Now donate to an NGO upgrade your credit card limit.

To test our insight, Tarjeta Cecosud partnered with the most recognized NGO in South America, Techo, which has multiple initiatives to fight poverty. We launched an online platform where Tarjeta Cencosud credit card holders can donate directly to Techo to upgrade their credit limit. The launch was communicated on card holders monthly statements, Tarjeta Cencosud ’s website, social video, and in different retail stores and malls across the country. As soon as it was launched, donations started to flow and credit limits were upgraded. Due to the immediate success, the platform will remain active indefinitely and Tarjeta Cencosud is working to partner with other NGOs.

43% of Tarjeta Cencosud credit card holders have upgraded their limit while also doing good for their community. In just a year after the launch, Techo used the Tarjeta Cencosud donations to build more than 200 houses for those in need. Additionally, 99% of clients who received an upgrade on their credit limit, paid the total amount of their balance on time unlike a 78% of the clients who didn’t donate. We increased brand sentiment and created a successful financial system that rewards those who give more.

Through providing a new benefit, we found a new way to retain our customers while helping people in need. We created a platform where Tarjeta Cencosud’s credit card holders could upgrade their credit limit if they donated money to a NGO every month. We chose “Techo” an NGO that provides homes to people and families in distress. Clients were contacted through different media. They were targeted in social networks, identified by their credit card balance and/or through retail shopping.

Our insight was that a financially charitable person is a financially responsible person. Our strategy was to leverage this insight to increase the credit limit of deserving Tarjeta Cencosud card holders.

Credit limit is based on people’s income, their assets and risk level. In South America, the informal labor rate is high, yet many people can buy more than what their income reflects. Thus, their credit limits are often not reflective of an individual’s financial situation.