If you’ve spent any time around Millennials, you’ve probably noticed that they have a common language that can sometimes seem like code. Fear of missing out, or FOMO for short, is a familiar notion for this group, but the concept can also be applied to financial institutions.
What if all your competitors were adopting a new technology that was transforming in-branch customer experience, while your institution remained on the sidelines? Would you have FOMO?
The truth is, this is already happening with financial institutions large and small across the country with instant card issuance. If you want to “Get in the game” with instant issuance (so-to-speak), here’s what you need to know about this game-changing solution.
What Is Instant Issuance?
Instant card issuance is the solution that enables financial institutions to produce and distribute a fully functioning debit and/or credit card to an accountholder at the time of an account opening or upon request in a lost or stolen situation. Best of all, it’s done directly in the branch. Card@Once® is one of the many solutions that provides personalized cards that are chip-enabled and fully EMV compliant. The technology is provided by a cloud-based service provider and can be up and running with just an internet connection and a power outlet.
How Instant Issuance Provides Superior Customer Experience
Many customers demand instant gratification but don’t know that instant issuance is an available option. From 2000-2015, Mintel reports noncash payments have grown at a compound annual growth rate of 12.16, meaning even if consumers are unaware of instant issuance, it’s the (growing) trend of the future that needs to be on their radar. This means your financial institution can use instant card issuance as an opportunity to surprise and delight your account holders which leads to increased customer engagement and loyalty.
If customers are aware of instant card issuance, meet their demands and expectations right on the front line. 70% of US consumers have used their debit card in the last 30 days, with younger consumers especially keen to use debit over credit.
More Transactions, Higher Activation and Usage
Happy customers are the key to good business, but that’s only one benefit of instant issuance. When account holders walk out of your branch with their newly activated debit or credit card in-hand, you’re closer to maintaining that coveted top-of-wallet status. Try doing that with standard 10-day mailing. Instant card issuance is a valuable tool for U.S. financial institutions to acquire and maintain the lead payment spot in customers’ wallets.
Having an instant card issuance solution also means achieving payment stickiness with your accountholder. Instant issued cards have seen activation and usage rates as high as 89 percent. Customers are using their cards within hours rather than days; studies show that these cards are being used on average within the first 93 minutes of activation compared to the first 10 days as with standard issue, which means instant issuance services could lead to increased account holder activity.
Increased Revenue, Decreased Costs
Along with elevated customer experience and higher activation and usage, instant card issuance comes with major business benefits.
A large benefit instant issuance offers is an increase in non-interest income. This solution has been shown to increase revenue by producing five additional debit transactions per month, as well as a five percent increase in overall transaction volume. Instant card issuance also saves financial institutions money because it is less costly than central issuance and leads to increased use of mobile deposit, which equals cost savings for branches.
Finally, in addition to the financial benefits, instant issuance is a more secure option. It’s safer and less expensive than mailing a new debit card, which helps reduce instances of fraud and allows financial institutions to remedy fraudulent situations faster.
With all of the benefits for both account holders and institutions, it’s easy to see why this technology is increasing in popularity. Predictions are that instant card issuance will go mainstream by the end of the year, and account holders are rapidly beginning to demand this option. Ask yourself, will your financial institution be ready?
>>How is Amazon impacting the customer experience for financial institutions? Find out here.