How financial instant issuance can benefit banks - Banking.com
By: root, JAN 04, 2018
More than anything else, today’s consumers are driven by convenience – sense and simplicity in carrying out everyday transactions. The digital age has caused consumers to seek out products and services of the highest quality delivered using the fastest means available. For banks and financial service institutions, the question is how to deliver such products and services demanded by their customers the fastest.
Enter instant issuance.
Instant issuance allows customers who have lost, damaged, or otherwise had their cards compromised to order a new debit or credit card at their local branch in an instant. Rather than waiting days or weeks for a new card like in the olden days, customers can have a brand new, personalised, activated card within minutes of stepping into the local branch.
In addition to meeting consumer demand for convenience, instant issuance also benefits the banks and financial service institutions that adopt it.
Top-of-wallet Positioning
Instant issuance stands at the top of the speed and convenience rankings. Conventional credit and debit cards need a few weeks to replace, moving the issuing banks down the consumers’ wallets. By adopting instant issuance, banks stand to improve customer satisfaction by a large margin. What’s more, greater satisfaction promises greater visibility whenever a customer makes a purchase.
More Customers
Instant issuance can attract more customers, especially if the competition hasn’t adopted the approach. In 2016, Entrust Datacard found that 77% of bank branches in the US that did not offer instant issuance have at least one competitor that does within driving distance. By incorporating instant issuance, banks can instantaneously gain an advantage over the competition.
Greater Purchase Volume
In recent years, consumers tend to favour credit or debit cards over cash – even for small purchases. A CreditCards.com survey in the US found that 17% of consumers used credit or debit cards to purchase items costing less than $5 (around Rp65.000), an 11% increase than the previous year. The reliance on “plastic cash” is backed by an analysis by Entrust Datacard: financial institutions that offer instant issuance experience a 50% growth in purchase volume and a 34% increase in purchase transaction compared to those that don’t offer instant issuance. One can easily infer that banks that offer instant issuance are in a greater position than banks that don’t offer the same service.
Improved Efficiency
Instant issuance is a straightforward method to improve customer satisfaction. Good banks offer instant issuance, but great banks see the efficiency offered by instant issuance. By creating positive customer experience in-branch from instant issuance, banks can educate customers on self-service options to move low-value transactions from in-branch employees. This way, more resource can be put to focus on bigger, more profitable prospects elsewhere.
In today’s rapid-paced world, convenience is king by a long shot. Using instant issuance, consumer demand of seamless, quick, efficient, convenient, and easy banking experience are satisfactorily met. Instant issuance offers the short-term solution for the long-term benefit down the road.
