Re-posted with permission from CPI Card Group and edited.
When financial institutions instantly issue new or replacement cards on-site, cardholders enjoy convenience and an improved overall branch experience. Beyond the impact that good customer service can bring, banks and credit unions of all sizes can see remarkable financial benefits. Below are five key ways banks and credit unions can improve their revenue opportunities with instant issuance.
1. Enhance Branch Efficiency
With instant issuance, banks can create a more frictionless process, allowing frontline staff to deliver cards quicker and create a more efficient customer care experience. Time and staff resources previously committed to the card order process can be funneled back into core productivity and face-to-face time with cardholders – making for happier employees, happier customers or members, efficient operations and the financial benefits that come with them.
2. Deliver Better Customer Experiences
Aiding both customer acquisition and retention, instant issuance is an integral way for branches to meet consumer expectations in the on-demand era. The technology becomes critical when cardholders need a replacement card. Instant issuance helps minimize any disruption to their lives, allowing them to get back to business as usual after a quick visit to their branch. A strong customer experience can pave the way for loyalty, and potentially, more customers or members and more business.
3. Ride the Contactless Wave
According to ABI Research, U.S. contactless card shipments will hit 173.5 million in 2021, a significant increase over the 25.7 million shipments in 2016. Issuers that can deliver dual interface EMV® cards via instant issuance will enjoy the competitive edge of providing a more frictionless payment experience. Contactless cards tend to be top-of-wallet, especially for small-dollar transactions – which helps to migrate spend from cash to card and further amplifies the interchange revenue potential from instant issuance.
4. Grant Immediate Purchasing Power
When cardholders place new, ready-to-use cards in their wallets immediately upon a branch visit, they gain the ability to start making purchases as soon as they step out – creating significant interchange revenue potential for banks and credit unions. Instant issuance has been shown to positively impact debit activation rates with increases of 4-10 percent, depending on branch and member demographics. Debit card programs can also see an average increase of 21 percent in monthly debit purchase transactions, depending on the mix of new and existing cardholders receiving a new card.
5. Reduce Mail Costs
Financial institutions that implement instant issuance to expedite cards into cardholder hands while the customer or member is onsite can reduce their mail-related costs, seeing savings upwards of $1 per card. By offering cards to new account holders and replacement cards to current customers, the cost-savings over time can be substantial. In addition, both the institution and the cardholder avoid the costs associated with mail delays or card interception.
Get More from the ISG
Talk to your local ISG dealer about financial instant issuance, central card issuance, and other solutions to help improve the efficiency and security of your bank or credit union. From helpful tips for increasing your revenue opportunities to local service and support for access control, video surveillance, time and attendance, asset tracking and much more, your local ISG member representative can assist in your organization’s growth and your personal piece of mind.