BOSTON—A new report indicates that instant card issuance in branches will go mainstream by 2018, and that many FIs will begin ramping up for the service next year.
Aite Group’s “Instant Card Issuance: U.S. Market Sizing and Deployment Guide” report, authored by Senior Analyst Madeline Aufseeser, points out the move will be spurred by EMV credit and debit conversions.
“Expect branch installations to jump during 2015, as EMV card replacements go full throttle and FIs' marketing initiatives attempt to influence cardholders for top-of-wallet positions. Issuers need to consider deployments now to meet growing needs,” the company stated.
Aite pointed out that that the emergence of digital wallets is not driving plastic debit and credit cards to the verge of extinction. “In fact, just like cash, plastic cards will reside in consumer wallets for a long time to come,” the study stated. “There are currently 849 million cards circulating among American cardholders, of which 570 million are active and almost 350 million are being used for purchases.”
Instant card issuance represents a front-line marketing offensive that turns an adverse event into a positive consumer experience and creates a differentiation point for new account openings, explained Aite. “In both cases the service represents one more arrow in marketers' quivers and triggers immediate card use,” the study explained.
The report, the second in a two-part series that examines instant card-issuance solutions, shares recommendations for FIs moving to instant issue:
- Secure budgets now for 2015 and 2016 installations.
- Start the due diligence process on all program aspects before committing to a solution and build a comprehensive rollout plan.
- FIs with multi-branch deployments should build installation scorecards.
- All FIs should balance system costs with selectively deploying right-sized solutions. Understanding solution configuration options most suitable for each branch installation is critical. Don't fear mixing and matching solution features with varying branch needs.
- Build solutions with EMV cards at the onset—most mag-stripe card applications will become obsolete over the next year.
- Consider embossing solutions for improved cardholder perceptions.
- Evaluate the need for hosted solutions.
- Sync up bulk, central ordering systems with instant card-issuance solutions and utilize existing supplier contracts for card stock and supplies where possible.
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