Cardholders are 22% more likely to be very-to-extremely satisfied with their bank on getting an instantly issued debit card instead of a centrally issued card by mail, according to a new Javelin Strategy report sponsored by Entrust Datacard.
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The study, titled "Instant-Issuance Payment Cards: Fulfilling Consumer Expectations for Immediacy," cites that cardholders who are issued cards instantly often start using them immediately. This brings between $0.50 and $0.77 in additional interchange revenue during the first month for their bank.
Instant-issuance customers are more likely to hold the view that their bank is innovative (64% versus 48%) and a great finance partner (57% versus 45%).
These customers are also 30% more likely to be very-to-extremely satisfied with their bank when replacing a lost or compromised card as compared to those customers getting a card via mail.
Also, up to 40% of the centrally issued cards are never activated, while activation rate for instantly issued cards in-branch can reach 100%, the study adds.
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By GlobalDataIn addition, the survey respondents also cited that bank employees use the time taken to print a card in-branch to gain better insight into the preferences of their customers and cross-sell relevant products.
Javelin Strategy analyst and the study’s lead author Nick Holland said: "While financial institutions traditionally focus on the monetary benefit of instant issuance, our research shows it can also empower them to address growing customer demand for immediate service – from opening a new account to replacing lost or stolen cards.
"Notably, smaller institutions, such as community banks and credit unions, are leading adoption of instant issuance to gain a competitive advantage over their larger peers."
