Cardholders are 22% more likely to be very-to-extremely satisfied with their bank if they have received an instantly issued debit card instead of a card sent by mail. A new study also found that cardholders who receive their card instantly in a branch often start using it immediately, accruing between $0.50 to $0.77 in additional interchange revenue for their bank during the first month.
According to a new Javelin study sponsored by Entrust Datacard as consumer expectations for on-demand services rise, a growing number of banks and credit unions are shifting debit card distribution from mail delivery to instant issuance. The new study, “Instant-Issuance Payment Cards: Fulfilling Consumer Expectations for Immediacy,” provides insights into how banks can optimize their in-branch experience and build customer trust by offering instant card issuance services.
Other key findings from the study include:
• Customers value the convenience of instant issuance and its halo effect extends to overall satisfaction with their bank. Instant-issuance customers are more likely to believe their bank is innovative (64 percent vs. 48 percent) and a great finance partner (57 percent vs. 45 percent).
• The satisfaction gap between banks with and without instant issuance is wider for customers replacing lost or stolen cards. Instant-issuance customers were 30 percent more likely to be very-to-extremely satisfied with their bank when replacing a lost or compromised card compared to those who received a centrally issued card by mail.
• Financial institutions can use the five to 15 minutes it takes to print a card in-branch to deepen customer relationships. Survey respondents reported that employees in their branches use this time to better understand customers’ individual needs and then cross-sell relevant products and services.
• Up to 40 percent of centrally issued debit cards are never activated, but activation may reach 100% for instantly issued cards. Executives at financial institutions placed activation rates at 60 percent to 70 percent for centrally issued cards while activation of instantly issued cards in-branch can reach up to 100 percent.
For data, background and forecasts on Instant Cards: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
Additional database resources include CardWeb.com’s CardExecs® – comings & goings of payments movers & shakers; CardWeb.com’s CardWatch® – ears & eyes on marketing globally (57K items); and CardWeb.com’s CardPixes® – form & function of card design (7K items).