Independent Banker - July 2017 - 68

underscored its commitment to the
safety and security of its customers'
accounts, says Mark Zaback, president
of Jonah Bank.
" We got on the phone and called
all of our customers, telling them to
come in and get a new card, " he says.
" It's a lifesaver. Our customers absolutely
love it. "
Lowell agrees. " When a data breach
occurs, customers can come into
the bank and get a new card immediately. "
The immediacy of instant
issuance cards is especially handy
when clients are preparing to travel.
For example, consider a family that is
preparing to travel for vacation, and
their card is compromised the day
before departure. A quick trip to the
bank to pick up a new card before
they leave, and their trip can go on as
planned.
But that's not all. Instant issuance
cards also enhance customer satisfaction
with their banks, because they
offer a full-service capability that
supports customer needs.
According to the Javelin report,
cardholders are 22 percent more
likely to be very to extremely satisfied
with their bank overall if they
receive an instant issuance card.
Instant issuance customers are also
more likely to view their bank as
innovative (64 percent versus 48
percent), a great finance partner (57
percent versus 45 percent) and an
effective communicator (65 percent
versus 53 percent).
With statistics like these, it's easy
to see why instant issuance use is on
the rise.
The obstacles
If instant issuance is such a game
changer, why aren't more banks
using it? Startup costs, for one.
Although costs vary based on a
number of variables, including the
compatibility of the equipment with
the bank's core processor, instant
issuance is sometimes expensive.
Issuers must consider costs for
equipment, card stock and technology,
and compatibility with existing
processors and systems.
" It cost enough for me to ask
whether it was really worth it, " says
Zaback, who estimates his implementation
costs were somewhere
around $60,000. " But it's a great
product, and customers love it. "
Despite the initial startup investment,
experts say instant issuance
cards reduce issuers' costs in the
long run, eliminating expenses typically
associated with rush orders,
packing, mailing and shipping.
Rob Dixon, an instant issuance
product manager with CPI Card
Group, also points out, " EMV
migration became an issue when
Visa and MasterCard came out
with the new chip technology in
September 2015. " (EMV stands for
Europay, MasterCard, and Visa, a
global standard for cards equipped
with chip technology.) According
to Dixon, " Merchants who did not
support chip and PIN technology
could be held responsible for fraud. "
68 ICBA IndependentBanker July 2017
Practically, this meant issuers had to
manage customers' frustrations and
deal with the cost and inconvenience
of distributing new cards.
According to the Javelin study,
banks should consider EMV cards
from the start. " When deciding to
implement instant issuance, consider
hardware for printing EMV cards.
Although these machines and cards
might be more costly, EMV will soon
" With instant issuance,
card usage goes up
dramatically, and
increased usage means
increased revenue. "
-STEVEN LOWELL,
MONSON SAVINGS BANK
be ubiquitous, " it says. " The crossselling
opportunity at the point of
instant issuance is a perfect time for
articulating the benefits of EMV to
the customer. "
The process
So, how does a bank move toward
instant issuance?
According to Trent Sorbe, president
of Central Bank of Kansas City's
Central Payments Division, it starts
with building a business case.
" It's important to balance customer
demand with cost, " he says. " There
are a lot of providers out there. Do
your due diligence. It makes no sense
to spend money on an expensive
piece of equipment you're not going
to use. "
Once the bank identifies a provider
and installs equipment, the process is
relatively simple for branch staff and
their customers. When an individual
comes through the door, opens an
account and requests a card, a bank
teller or employee enters the data into
the system, and a nearby machine
prints the cards.
As banks walk through the set-up
Independent Banker - July 2017

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