The Icelandic bank will use the Danish-based banking solutions firm's CLO program, which utilises proprietary machine-learning algorithms and forecasts consumer spending behaviour.

Merchants will get access to customer segments that only contain consumers likely to be interested in their products.

The CLO program is available to all Islandbanki's customers and is estimated to reach more than 30% of households in the region.

“As one of Iceland's most innovative businesses, it is an honour to partner with Islandsbanki on this latest offering,' said Bragi Fjalldal, CMO at Meniga (pictured above).

“In order to stay competitive, banks must innovate in their digital user experience as well as in their business model.

“With CLO, banks do both at the same time by delivering personalised, deep discounts to their customers and building a new source of revenue.'

European banks have only just begun to pick up on the CLO market and this deployment is Europe's first fully integrated multi-platform card-linked offer program.

“Most leading European banks have CLO somewhere on their roadmap and they understand there is a clear first mover advantage in this space,' added Bragi.

Sveinbjorn S Gretarsson, head of payments at Islandsbanki, said it had enjoyed an excellent partnership with Meniga over the past eight years.

“We truly value Meniga's strive and focus to improve customer digital experience and we look forward to build on our relationship.

“…The introduction of CLO Islandsbanki will offer superior value to its customers and retailers.

“It is a big step for Islandsbanki to launch a cutting-edge CLO program, strengthening Islandsbanki's position in payments in an increasingly competitive market.'