With so many advantages, it is surprising more financial institutions don’t prioritize instant card issuance. This is perhaps due to several myths, rumors, and misconceptions around instant issuance.
Let’s debunk some of those rumors so you can make an informed decision about instant issuance for your financial institution.
Myth #1: Instant issuance costs too much
In some cases, instant issuance can cost less than central issuance because instant issuance doesn’t carry fulfillment and handling costs like postage. Plus, instant issuance is more secure than mailing cards to cardholders, considering the prevalence of identity theft and fraud.
Myth #2: Other initiatives are more important than instant issuance
When budgets are stretched thin it can be hard to know which initiatives to prioritize. Instant issuance positively affects customer experience, which drives engagement and loyalty.
Myth #3: Instant issuance does not affect activation or usage
The average time to card usage falls from 10 days to 10 minutes when comparing central issuance and instant issuance. Delaying your customers’ receipt of their card delays when your institution can begin earning from the cardholder’s account.
Myth #4: Instant issue doesn’t provide a competitive advantage
Consider the psychology behind FOMO — the Fear of Missing Out. FOMO is a feeling of anxiety that you made the wrong choice and are missing out on a better experience. For many customers, a ten-day delay in receiving a card to access their new account is unacceptable — especially when your competition offers their customers access immediately.
Myth #5: Low new account balances negate the effectiveness of instant issuance
New accounts are usually opened with small amounts and it can take time for them to start showing activity. But customers may be more inclined to deposit a large sum in an account if they know they will have immediate access to it. Plus, instant issuance fosters a pattern of card usage straight away. The result is increased activity and higher account balances.
Myth #6: Mobile wallets will replace credit cards
Mobile wallets are certainly on the rise, but they are not ubiquitous. People still need physical cards in a variety of situations and many prefer to pay with a card.
Give the people what they want
Innovation is everything, especially in banking. Your customers expect to have easy access to their accounts from day one. With instant issuance, you can give them what they want.
Download our complete e-book for a more in-depth look at instant issuance misconceptions slowing down adoption.