Independent Banker - July 2017 - 67

PAYMENTS EXCHANGE
As if by magic...
Instant issuance can boost card activation rates, interchange fees and
customer satisfaction. We look at how it works, how much it costs and other
practical considerations.
By Mary Yerkes
interchange in the first month alone.
Customers who receive their cards
instantly through their branch immediately
begin accruing interchange for
the issuer.
Steven Lowell, president and CEO
of $340 million-asset Monson Savings
Bank in Monson, Mass., agrees.
" The sooner you get the customer
acclimated to what the card can do, it
accelerates the revenue opportunity, "
" It cost enough for me to
ask whether it was really
worth it. But it's a great
product, and customers
love it. "
-MARK ZABACK, JONAH BANK
he says. " With instant issuance, card
usage goes up dramatically, and
increased usage means increased
revenue. "
G
one are the days of
scrambling for money
while you wait for your
new or replacement
card to arrive. Instant
issuance allows banks to provide
customers with new or replacement
cards on the spot in branch locations,
enhancing customer satisfaction and
retention and providing banks with
increased revenue opportunities.
In short, instant issuance offers
banks big benefits and a distinct competitive
advantage.
A Javelin research report, sponsored
by Entrust Datacard, revealed
that activation rates hover around
60 to 70 percent of centrally issued
cards. Because cards generate interchange,
the 30 to 40 percent of cards
not activated represent lost revenue.
However, with instant issuance, activation
rates could reach 100 percent,
as customers receive their cards
instantly through their branch.
According to the Javelin report,
issuers benefit from $0.50 to $0.77
in incremental lift per card in
In fact, after issuing a card, employees
at Monson Savings Bank walk
out to the ATM with the customer
to ensure the card is working properly
by initiating a balance inquiry.
Because customers use the card
before even leaving the bank, this
almost guarantees an immediate
surge in usage.
Building goodwill
Instant issuance also offers banks
a reputational boost. Jonah Bank
in Casper, Wyo., which has more
than $300 million in assets, issued
new cards on the spot to customers
affected by the 2013 Target and 2014
Home Depot data breaches. This
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Independent Banker - July 2017

Table of Contents for the Digital Edition of Independent Banker - July 2017

Table of Contents
Independent Banker - July 2017 - Intro
Independent Banker - July 2017 - Cover1
Independent Banker - July 2017 - Cover2
Independent Banker - July 2017 - Table of Contents
Independent Banker - July 2017 - 2
Independent Banker - July 2017 - 3
Independent Banker - July 2017 - 4
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Independent Banker - July 2017 - Cover3
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