Innovation is key to the long-term success of any credit union – particularly as it relates to member service. Credit unions have invested heavily in technology to support their digital banking platforms and savvy credit unions are recognizing the value of doing the same within the branch. Members have come to expect greater levels of convenience and functionality through the branch as they have from mobile and online channels.
All too often, however, when members venture into their local credit union branch, they still encounter processes that may have not been updated in decades. In today's hyper-competitive business environment, this is highly unfavorable. Despite what many in the industry think they know relative to branch banking, the branch remains a vital component to the credit union-member relationship as consumers continue to show a desire to access their local branch. Forward-thinking credit unions are working to ensure that branch technology and mobile technology are integrated to provide a consistent level of service regardless of delivery channel. Just as features like mobile check deposit have helped engage consumers through the mobile channel, innovative branch technology like instant issuance is achieving the same results within the branch environment.
Grow Your Member Base
The branch has proven its value in supporting member acquisition and onboarding and this continues to be the case with the newest generation of credit union members. Research conducted by CPI Card Group indicates millennials are nine times more likely to open an account if they are shown how quickly they will be able to use their debit or credit card at the very beginning of the account opening process.
Millennials, as a group, are accustomed to immediate access to goods and information, and issuers must be able to cater to these consumer preferences if they are to grow their market share among younger consumers. A recent Gallop poll indicated that only 31% of millennial consumers are fully engaged and loyal to their financial institutions compared to 95% with their wireless providers. Issuers must adapt to meet the expectations of a generation of consumers that value convenience and are more likely to switch financial institutions if they can find better technology offerings elsewhere. This presents a marked growth opportunity for credit unions who have historically led the charge in introducing new technology and services to retail banking.
Millennials also react favorably to customization of products and services tailored just to them. Instant issuance provides credit unions with a way to personalize payments cards for members through custom card printing capabilities. This also enables credit unions to build brand awareness and differentiate themselves within their communities by marketing cards that feature mascots or logos of local sporting teams, schools, organizations or community landmarks, to invoke pride within members of the community.
The Branch as a Profit Center
Beyond the branch, payment card transaction revenue is an important component of any credit union's overall profitability and instant issuance plays a key role in supporting this by getting cards in the hands of members more quickly. In simplest terms, the faster an issuer can get a card to its consumer, the better; on average, account holders use their cards within eight hours of receiving them. With a traditional, central issuance model, consumers must wait an average of seven to 10 days to receive their cards and even then, data suggests that only 90% are ultimately activated. Additionally, when credit unions implement instant issuance, they stand to gain an additional five transactions per card during the seven to 10 day window members would traditionally wait for their card to arrive in the mail.
By issuing cards directly from within the branch, instant issuance programs essentially help convert branches into profit centers. At its core, instant issuance is purposed to enable greater consumer satisfaction through enhancing the branch banking experience while enabling financial institutions to realize greater ROI from branch operations.
Strengthening Member Relationships
Face-to-face interaction continues to hold tremendous value for members and remains a major component of why they ultimately select and remain loyal to their credit union. It is vital that credit unions provide reasons for members to come into the branch – and then continue to do so to bring them back in. Whether it is expediting a new member's account opening process, responding to an instance of card theft or fraud, or simply helping educate a member on new programs like EMV and how they benefit them, a well-equipped instant issuance program can positively impact both staff and member experiences within the branch.
Rob Dixon is Product Manager for CPI Card Group. He can be reached at 720-402-8696 or [email protected].
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