In today’s highly competitive market, the pressure to attract and retain customers is at a tipping point. Consumers today expect instant satisfaction and they are demanding customized, real-time services from their financial providers that simplify and enhance their daily lives.
Research from Aite Group in its latest report, “Instant Gratification: The Case for Instant Card Issuance in the United States,” shows how instant issuance can help with this growing trend.
During the last six months, large data breaches and the coming wave of EMV card conversions have piqued financial institution’s interest in instant card-issuance solutions.
According to the study, instant card-issuance solutions can be advantageous for issuers due to interchange revenue and purchase volume lifts. In particular, 10% of new and reissued instant-issued cards lifts purchase dollar volume and interchange revenue by 2.5% – which can be very advantageous for financial institutions who want to increase profitability.
In addition, instant issuance can be a great benefit for emergency card replacements as breaches and card fraud continue to rise. Aite Group reported that 41% of U.S. consumers received a replacement card in the last year and 29% of those consumers used that replacement card less. In addition, 22% of consumers were somewhat or very unhappy with the treatment from their financial institution when they experienced fraud, and 9% changed their financial institution or credit card company.
Being able to instantly reissue cards provides unprecedented customer service, increased security and tremendous cost savings. In a world where almost everything is instant, the banking industry needs to respond with relevant technology to ensure customers have the best possible banking experience. When there is a need for a replacement card, the financial institutions that are best prepared to meet their customers’ needs have consistently reported higher customer retention rates and incremental revenue gain from the instantly issued cards.