The Instant Issuance Satisfaction Boost
Consumers demand speed in just about every aspect of their lives – and banking is no exception.
According to a survey by Fiserv, Inc., three in four households want real-time balances on all of their accounts and 72% want instant posting of transactions. When it comes to millennials aged 25 to 35, those numbers jump to 83% and 86%, respectively.
But for far too long, consumers have lacked visibility into fraudulent activity on their bank statements – often times only being made aware of suspicious activity once it was already too late. Advanced authentication methods, coupled with the availability of instant issuance, are improving the consumer experience by dishing out newly-activated payment cards faster than ever before.
Although it may no longer be considered novel technology, pairing instant issuance with mobile solutions enables credit unions to notify members of fraud in just seconds and deliver the speed, security and service they crave.
Together, these solutions are helping credit unions deliver the swift and secure banking experience needed to keep pace with increasing consumer demand.
The Purchasing Power Play
Losing a payment card is a terrible (and inconvenient) thing.
However, what's even worse is the immediate loss of purchasing power when a plastic card either goes missing or is stolen. Considering how many people rely on payment cards during checkout, it's easy to imagine the pain points in having to shift back to other payment methods, or simply not be able to make a purchase at all, until a replacement card is provided.
Total System Services’ 2016 U.S. Consumer Payment Study found 40% of consumers prefer to use credit cards, 35% opt for debit cards and just 11% choose cash. Instant issuance has the potential to transform the banking experience for those consumers who regularly opt for plastic. By replacing consumer purchasing power within a few minutes, instant issuance stands to increase customer satisfaction while also improving activation rates.
According to a Javelin study sponsored by Entrust Datacard, executives at financial institutions placed activation rates at 60% to 70% for centrally issued cards while activation of instantly issued cards in-branch can reach up to 100%. With instant issuance, credit unions can also drive new sales by presenting other products and services as consumers receive their instantly issued cards.
Keeping Satisfaction and Security Top of Mind
Though the fight against fraud is nothing new, a steady rise in attacks has heightened consumer concerns – putting increasing pressure on all financial institutions to keep fraudsters at bay. Verisign's DDoS Trends Report for Q1 2017 revealed the average DDoS attack size increased by 26% over the previous quarter, with nearly half of those companies being attacked multiple times. In the same way, ill-prepared businesses can fall victim to cybercrime, consumers who only check their online account or bank statement once every few days are particularly vulnerable to fraudulent activity that can pop up any time of day or night.
It's not all bad news, though.
The emergence of more advanced authentication methods that also leverage instant issuance has made it easier than ever before for credit unions to protect member accounts. These new methods not only keep accounts safe, but also provide a level of comfort and convenience members are looking for.
Credit unions already have a well-established reputation for delivering unparalleled member service. From checking accounts to overdraft services, credit unions are often known for offering more consumer-friendly terms to provide top-notch service. In fact, the American Satisfaction Index has awarded credit unions a higher customer service rating than banks every year since 2008. By beefing up security through different authentication methods, credit unions can continue to offer an increased level of convenience and security to members, while also maintaining their long-standing reputation of service.
One new authentication method already being used by credit unions is instant push notifications, which enable consumers to authorize transactions directly from their mobile banking app. If the consumer didn't make the purchase, he or she can quickly decline the transaction and report the fraud directly to the credit union. In the event that a consumer's account is breached or they simply lose a card, financial instant issuance can be used to distribute a fully activated payment card in less time than it takes to withdraw cash from an ATM.
An authentication solution that might soon find its way into credit unions is iBeacon technology. By integrating into their mobile apps, iBeacon technology can give credit unions the opportunity to identify members from the moment they walk through the front door. Rather than waiting to review a member's account information until they arrive at the teller window, employees can send a push notification to an accountholder's mobile phone, review their reason for coming in and prepare relevant cross-selling opportunities. Perhaps even more importantly, fraudsters who request a replacement payment card through a stolen laptop and then attempt to pick it up at a local branch will be stopped dead in their tracks.
These authentication methods can go a long way toward increasing consumer satisfaction. Cardholders are 22% more likely to be very to extremely satisfied with their financial institution if they’ve received an instantly issued card instead of a card sent by mail. Better yet, quick access to a new payment card also promises to boost visibility through top of wallet placement, leading to greater usage rates and loyalty later on.
An Instant Issuance Future
Industry experts on every side of the argument continue to weigh in on what's in store for the future of branch banking.
From the idea that branch banking is inefficient and outdated to assertions a branch can serve as a unique selling proposition, it's difficult – if not impossible – to know which prediction will prove to be true.
Despite these conflicting opinions, however, one thing remains crystal clear: The future of banking is consumer centric.
Spurred by the adoption of smartphones and other mobile technologies, financial institutions are focusing on consumers much more than products. Although digital offerings satisfy many of the needs consumers have today, don't underestimate the importance of human interaction – especially when it comes to emergencies. To help fill that void, instant issuance is improving the banking experience by providing services that enable financial institutions to develop deeper relationships with consumers.
People want high quality goods and services – and they want them now. With the demand for instant gratification continuing to impact more aspects of our daily lives, it's no wonder consumers expect similar speed and convenience from financial institutions. To stay atop of an increasingly competitive industry, credit unions must look for ways to implement more meaningful solutions, like instant issuance. From higher card usage rates to increased member satisfaction, instant issuance stands to benefit credit unions in more ways than one.
Alyssa Arredondo is Director of Financial Vertical Marketing for Entrust Datacard. She can be contacted at email@example.com.