Since Amazon became the No. 1 retailer in the world, consumer needs for ease and immediacy in all brand interactions have only grown.
Some call this disruption the “Amazon effect,” and it holds implications for brands of all sizes—even for credit unions.
Like it or not, member attitudes are shifting, and it is up to the institutions that serve them to attract and retain their business.
Here are three ways instant issuance can help credit unions keep up with the “Amazon effect” on banking.
Attracts new members
Going to your branch to get a replacement debit card instantly is important because, really, who wants to wait?
It’s an especially popular feature among the younger demographics. These consumers are at the forefront of the “on-demand” economy, largely because they’ve never known life in a different way.
Thirty-six percent of millennials ask for instant issuance by name. Another 36% of millennials (and 47% of 18- to 24-year-olds) say instant issuance impacts their decision on where to bank, according to Aite Group.
Supports in-branch interaction
The rise of digital self-servicing tools has impacted branch interactions. Sixty-seven percent of consumers conduct most online business via online banking, and 43% no longer go in-branch at all, according to Time Trade.
Yet, despite the fast-changing technology landscape, branch banking continues to be important to both consumers and credit unions.
As more credit unions re-evaluate their branch positioning strategy to provide more meaningful and profitable engagements, instant issuance appeals as a way for branches to remain relevant.
Enhances member loyalty
There are more payment options available to consumers today than ever before, and with mobile payments disrupting the space, loyalty is critical. This is because a card is still behind every transaction, and consumer decisions on which card to use is driven by loyalty.
Often, loyalty is decided by who is first to meet the need.
Being able to put a fully functioning debit card in a new member’s hand is still an unexpected benefit, and they’ll appreciate receiving their card immediately versus during the seven- to 10-day waiting period.
Instant issuance drives instant activation and usage, meaning credit unions with this capability have the best chance of keeping their card top of wallet.
By allowing customers to access goods they want faster, Amazon created a large – and loyal – customer base. Amazon now corners over a quarter of the $2.5 trillion ecommerce business, so it isn’t such a bad idea to model your institution on the ideals that made the Amazon brand such a success: ease, speed, and delivering an outstanding member experience.
Want more information on instant issuance? Click here to download “13 Critical Questions to Ask Instant Issuance Providers in Your RFP” from Harland Clarke.
MIKE SCHULTZ is sales engineer, card services, for Harland Clarke.