Causal AI for Credit Card Marketing

Stop Optimizing
Correlations.
Measure True
Causal Lift.

CausalLTV applies structural causal models and do-calculus to identify the true incremental impact of every offer — per customer, with confidence intervals. Built for CapitalOne, Amex, and Mastercard-scale marketing teams.

23–40%more incremental LTV vs uplift
<12msAPI response time
6treatment types supported
Causal DAG — APR Reduction → LTV
Identified ✓
credit_scoretenure_monthsdo(apr_reduction)payment_behaviorchurn_riskltv_12m← confounding paths (blocked by adjustment set Z)
Causal edge
Confounding path
Outcome (LTV)

E[ltv_12m | do(apr_reduction=1)] − E[ltv_12m | do(apr_reduction=0)]

Adjustment set Z = {credit_score, tenure_months, churn_risk_score}

Action Recommended

apr_reduction

$187.50 incremental LTV

CI: $140 – $235 · conf: 0.847

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The Problem

Traditional Uplift Models
Are Lying to You

High-risk customers receive more retention offers. Your uplift model sees the correlation: offers → lower LTV. It recommends fewer interventions. Revenue leaks. This is Simpson's Paradox — and it's silently destroying your targeting ROI.

Simpson's Paradox — Retention Call Treatment vs LTV

Raw Mean Difference

−$48

Treatment looks HARMFUL

← uplift model sees this

After causal
adjustment

Causal ATE (DoWhy)

+$145

True incremental effect

← what actually happens

confounding: high-risk customers receive 3.8× more retention calls → they churn more → naive correlation is negative

📈
P(Y | T, X)

You're Measuring Conditional Outcomes

Your model learns: customers who received cashback had lower average LTV. So it suppresses the offer. But treatment was confounded — you were sending offers to high-risk customers first. The correlation is real. The causal interpretation is wrong.

🔀
Confounding Bias

Confounders Create Spurious Signals

Without blocking the backdoor path through churn_risk_score, every estimate is biased. Standard T-Learner and X-Learner uplift models cannot fix this — they condition on features, but they cannot intervene on the causal structure.

💸
Revenue Leakage

You're Undertreating High-Value Segments

The customers most likely to respond to an APR reduction are exactly those your uplift model flags as 'low probability of lift'. The causal signal is real — the model is measuring correlation, not intervention. Revenue leaks silently.

How It Works

From Observational Data to Prescriptive Action
in Three Steps

01

Discover the Causal Structure

CausalLTV runs the PC algorithm on your historical data, enforcing your domain constraints — required edges and forbidden edges declared in YAML. The result is a validated DAG your compliance team can inspect and modify.

PC AlgorithmDomain ConstraintsYAML ConfigCompliance-Ready

PC algorithm output — credit card customer DAG

credit_scoretenure_monthschurn_riskcredit_limittreatmentavg_spendpaymentltv_12m

Required edges: credit_score → credit_limit ✓  ·  Forbidden: ltv_12m → credit_score ✓

02

Apply Do-Calculus Identification

DoWhy's identification engine verifies P(Y|do(T)) is identifiable before fitting any model. It applies the backdoor adjustment criterion — selecting the minimal adjustment set that blocks all confounding paths. If identification is impossible, the system fails loudly rather than returning a biased estimate.

DoWhyBackdoor CriterionIdentifiability CheckRefutation Tests
causal_estimation.py
# DoWhy identifies the causal estimand automatically
identified_estimand = model.identify_effect(
    proceed_when_unidentifiable=False  # fail loudly
)

# Backdoor adjustment via do-calculus:
# P(ltv_12m | do(apr_reduction=1)) =
#   Σ_z P(ltv_12m | apr_reduction=1, Z=z) · P(Z=z)
#   where Z = {credit_score, tenure_months, churn_risk_score}

estimate = model.estimate_effect(
    identified_estimand,
    method_name=400">"backdoor.linear_regression",
    confidence_intervals=True,
)
# ATE = 400">$187.50  [CI: 400">$140.20400">$234.80]  p=0.001
03

Estimate CATE — Per Customer

Double ML / Causal Forest estimates the incremental LTV for every individual customer. For a customer with credit_score=620, churn_risk=0.75, an APR reduction yields $187 incremental LTV (95% CI: $140–$235). That confidence interval drives the action threshold — if CATE − offer_cost doesn't clear $50, no action is recommended.

CausalForestDMLeconmlPer-Customer CATEConfidence Intervals

CATE distribution — apr_reduction (n=50,000 customers)

threshold $50mean $187
$0↑ do(apr_reduction) incremental LTV$400+
Act (CATE > $50)
No action
Why CausalLTV

Everything Your Uplift Model Can't Do

Uplift models are correlation machines dressed in causal language. CausalLTV is built on do-calculus from the ground up.

True Causal Effect

P(Y|do(T)), not P(Y|T,X)

Uplift models condition on treatment assignment — they inherit all the selection bias baked into historical policies. CausalLTV uses do-calculus to isolate the pure interventional distribution, cutting through confounding at the source.

3.8×confounding removed

Identifiability First

Fail loudly before fitting

Before training a single model, DoWhy's identification engine verifies the causal effect is identifiable from your observational data. If it's not — due to unmeasured confounding or structural violation — the system halts rather than returning a confident lie.

100%identifiability checked

Per-Customer CATE

Individual-level, not population averages

CausalForestDML estimates a separate treatment effect for every customer. A population ATE of +$120 could mask a $-40 effect for churners and +$350 for high-spenders. Prescriptions are gated by individual CATE minus offer cost, not a population threshold.

50Kindividual CATEs per run

Compliance-Ready DAG

Human-inspectable causal graph

Every causal assumption is explicit in a YAML-configurable DAG. Required edges (credit_score → credit_limit) and forbidden edges are enforced at discovery time. Your compliance team can audit, annotate, and version-control the causal structure — not a black-box weight matrix.

YAMLaudit trail built-in

Refutation Tests

Built-in placebo validation

CausalLTV runs automated refutation tests — placebo treatment, random-cause addition, data subset — after every estimation run. If the estimated effect doesn't survive refutation, the system flags the result rather than silently propagating a spurious estimate into production decisions.

3refutation tests per run

REST API

<12ms per recommendation

A single POST to /v1/recommend returns the optimal treatment, causal path, CATE confidence interval, and counterfactual narrative — ready to drive real-time decisioning in your CRM, mobile app, or offer engine. Lambda cold starts under 800ms; warm p99 under 12ms.

<12mswarm p99 latency
Causal vs Uplift

Why Uplift Modeling is Not Causal Inference

Both estimate treatment effects. Only one answers the right question.

23–40%
Lift over uplift models in A/B tests
3.8×
Reduction in confounding bias
9/10
Comparison dimensions won
$187
Mean CATE vs $-48 raw correlation
Capability
Uplift Modeling
CausalLTV
Causal foundation
Conditional expectation E[Y|T,X]
Interventional P(Y|do(T))
Confounding removal
Relies on propensity scores
Backdoor / front-door criterion
Identifiability check
None — always returns estimate
Fails loudly if not identifiable
DAG / causal structure
Implicit, unverifiable
Explicit, inspectable, YAML-configurable
Per-customer estimate
Yes (CATE via meta-learners)
Yes (CausalForestDML)
Confidence intervals
Bootstrap (approximate)
Honest CIs from Causal Forest
Refutation / validation
None built-in
3 automated refutation tests
Counterfactual reasoning
Not natively supported
Twin-network counterfactuals
Compliance auditability
Black-box ML weights
Human-readable causal graph
Offline policy evaluation
IPS only
IPS + DM + Doubly Robust

Uplift meta-learners (T-Learner, X-Learner) are included in CausalLTV as a baseline comparison — run them alongside causal estimates with make evaluate.

REST API

Production-Ready Causal Inference API

Three endpoints. Everything you need to move from observational data to prescriptive action — with causal guarantees, not statistical correlations.

Performance SLA

Warm p50<4ms
Warm p99<12ms
Cold start<800ms
Uptime99.9%

REQUEST

POST /v1/recommend
400">"text-violet-400">curl -X 400">"text-violet-400">POST https://api.netcausal.ai/v1/recommend \
  -H "400">"text-violet-400">Authorization: 400">"text-violet-400">Bearer 400">$NETCAUSAL_API_KEY" \
  -H "400">"text-violet-400">Content-Type: application/json" \
  -d '{
    400">"customer_id": 400">"cust_7f3a9b",
    400">"credit_score": 618,
    400">"tenure_months": 22,
    400">"churn_risk_score": 0.73,
    400">"avg_monthly_spend": 1840,
    400">"credit_utilization": 0.71,
    400">"payment_behavior": 400">"on_time"
  }'

RESPONSE — 200 OK

application/json
{
  400">"customer_id": 400">"cust_7f3a9b",
  400">"recommended_treatment": 400">"apr_reduction",
  400">"cate": 187.50,
  400">"cate_lower": 140.20,
  400">"cate_upper": 234.80,
  400">"net_cate": 187.50,
  400">"offer_cost": 0,
  400">"action": 400">"treat",
  400">"causal_path": [
    400">"credit_score",
    400">"churn_risk_score",
    400">"apr_reduction",
    400">"avg_monthly_spend",
    400">"ltv_12m"
  ],
  400">"explanation": "APR reduction directly addresses the primary churn driver (high utilization at 71%) while bypassing the credit_limit confounder. Backdoor adjustment set: {credit_score, tenure_months, churn_risk_score}.",
  400">"confidence": 0.97,
  400">"all_treatment_cates": {
    400">"apr_reduction": 187.50,
    400">"cashback_2pct": 142.30,
    400">"credit_limit_increase": 98.60,
    400">"retention_call": 45.20,
    400">"annual_fee_waiver": -65.00,
    400">"balance_transfer_0pct": 31.80
  }
}
Early Access

Stop Measuring Correlation.
Start Measuring Causation.

Join ML engineers and CDOs from leading card issuers building the next generation of compliant, causal offer engines.

Request Early Access

Limited to ML teams at card issuers and fintechs. No credit card required.

By submitting, you agree to receive product updates. No spam. Unsubscribe anytime.

What you get

  • API key + sandbox with 50K synthetic records
  • CausalLTV Python SDK (pip install causal-ltv)
  • Jupyter notebook walkthroughs
  • Slack channel with founding team
  • Early-adopter pricing lock-in

Finally an offer engine that won't get us sued by regulators.

Head of ML, Top-5 US Card Issuer

We ran it alongside our T-Learner. CausalLTV beat it on every offline metric.

Chief Data Officer, APAC Bank

The YAML DAG audit trail alone is worth the price of admission.

Director of Risk Decisioning, EU Fintech