An almost unimaginable number of data breaches continues to challenge financial institutions (FIs). Although consumers are more educated on where the “fault” for these compromises resides, many still consider their card issuers to be at least somewhat culpable.
If not to blame for the actual theft of their account numbers, credit unions and community banks are considered responsible by most consumers for the response to that theft. Ultimately, FIs are left holding the bag in terms of the replacement experience. How quickly the credit union or bank responds to the breach notification and how does that ultimately impact the consumer are the main concerns of the average cardholder.
With all eyes on the FI, it’s increasingly important to have a smart, flexible reissue strategy in place, particularly when it comes to debit cards. The average consumer uses his or her debit card more than 20 times a month. Not having that card is akin to a lost limb for many consumers.
This is why we are seeing more FIs invest in instant issuance programs (and more fintech firms checking into innovative delivery mechanisms, including drones!). Not only does this strategy allow for near-immediate replacement of compromised cards, it also jump-starts activation and usage for brand-new debit cardholders. A spot-on account opening experience is essential in today’s environment when landing that default position in digital wallets is so important. The sooner you can secure a cardholder’s confidence in his or her debit card, the better your chances for long-term engagement.
To be sure, instant issuance has grown in complexity in the Age of EMV. However, with the right partner and the right mix of innovative products, inventory management and reporting, instant issuance of EMV cards can meet – perhaps even exceed – the expectations of today’s breach-weary consumers.