Insight Center

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EMV® From a Banking Perspective and Distribution Strategies

I’m excited to have guest author, Docia Myer, Vice President of US Financial Sales at CPI Card Group, share her assessment of the EMV transition and how it has brought the entire banking industry together. — Greg


Docia Myer

Data breaches driving EMV adoption
You’ve heard about data breaches in the media and likely had discussions with your leadership about how to be proactive and mitigate expenses tied to fraud losses when a breach occurs. These crises are incredibly costly to large and small financial institutions alike. Just a few of the recent retailer breaches resulted in a combined cost of $722 million.

Financial institution CEOs are realizing they could also end up in this predicament (and on the front page of the Wall Street Journal) if they don’t adopt the most up-to-date security precautions. EMV, which is supported by the major card processors, is first on that list and has already made a huge impact in a short period of time.

Distribution strategies
How are financial institutions distributing EMV cards? There are many options in today’s environment. Large financial institutions are utilizing their central issuance strategies to get cards out in a mass issuance approach. They have sped up their normal reissuance cycle in order to get more EMV-enabled credit and debit cards into customers’ hands faster.

However, many of the 10,000 credit unions, independent banks and regional banks prefer an alternate approach to issuing new cards to their customers.

  • One alternate approach is instant issuance within branches. This approach speeds up the conversion process by offering customers brand new cards right away.
  • The second approach involves a more measured evaluation of a central issuance strategy. Issuers who opt for this approach have noted the latest merchant EMV adoption rate and are using that insight to decide whether or not a mass reissuance would be jumping the gun.
  • A third approach is to combine instant issuance with a central issuance strategy. Issuers can provide an EMV card using a solution such as Card@Once® and benefit from immediate adoption in a temporary-to-permanent migration plan.

It’s definitely up to the individual financial institution to determine the best approach for them, and we recommend spending some time to do the math.

Bridging divides
The EMV migration has been positive for the entire banking industry, small and large financial institutions alike. In addition to banks and credit unions, it has brought together retailers and card issuers to work together and make the transition successful. Without collaboration, it would be impossible to get 15+ debit networks, four card associations, thousands of merchants and 10,000 financial institutions to achieve a complex, common goal such as creating an EMV ecosystem. Fortunately, competitors that have fought tooth and nail for many years have come together for one common goal.

It’s been months since the migration began and based on the success we’ve seen and the capabilities the technology will enable moving forward, the future for EMV looks very bright indeed.


Watch Card Chat: EMV® Market Trends to learn more about the EMV transition experience.


EMV is a registered trademark or trademark of EMVCo LLC in the United States and other countries. ©2016 CPI Card Group Inc. All Rights Reserved.

Card@Once® is a registered trademark of CPI Card Group, Inc. US Patent No. 8429075.

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