FINANCIAL INSTANT ISSUANCE The way to make your card business more profitable 19 March 2015

Transcription

1 FINANCIAL INSTANT ISSUANCE The way to make your card business more profitable 19 March

2 What is Instant Issuance? What Issuance of permanent, personalized debit/credit/prepaid cards New account cards Emergency card replacements Auto-activated for immediate customer use Perfect complement to central issuance Where Bank branches (debit/credit) Retail stores (credit) Colleges/Universities (debit) Events (credit) Attended kiosks (credit)

3 Instant vs Central Issuance Central Issuance of EMV Card Blank Card Card Requested Card Personalization Production Activation D Time 1 Time 2 Time 3 Time 4 Mail/Postage D + 3 days Instant Issuance Blank Card Card Requested Card Personalization Production Activation D D 14:00 Immediate Card Use Customer Satisfaction Increased Revenue Reduced Costs 14:05

4 Producing a Card Instantly Tip of the Iceberg

5 Challenges Facing Financial Institutions 2014 Entrust Datacard Corporation. All rights reserved.

6 Corporate Challenges Core systems flexibility for new channel Trust Reputation Image Build new and stronger client relationships Regulatory changes Resources (Budgets) New entrants Stagnation of lending activities Economic climate

7 Card Portfolio Manager Challenges Core systems flexibility for new channel Security Fraud Trust Reputation Image New Customer Acquisition Activation Rates Build new and stronger client relationships Regulatory changes Credit Losses Card Usage Resources (Budgets) New entrants Account Income Account Balance Stagnation of lending activities Attrition Rate Economic climate

8 Instant Issuance Value Proposition Built on three pillars of customer-driven needs ENHANCE CONSUMER EXPERIENCE SECURE ISSUANCE IMPROVE PORTFOLIO PERFORMANCE

9 Instant Issuance Value Proposition ENHANCE CONSUMER EXPERIENCE SECURE ISSUANCE IMPROVE PORTFOLIO PERFORMANCE Your Customers Receive a New Card Instantly Offer Emergency Card Replacements Damaged Cards Lost/Stolen Cards Other Emergency PIN selected by the customer Offer a choice of personalized card designs

10 Cardwizard Personalization flexibility Image Gallery School cards Regional cards Magnetic Stripe Consumer Debit Business Debit HSA Prepaid Smart Card Contact/contactless PayPass/PayWave Custom Images Cardholder selected images

11 Value of FII: Improve Customer Experience Core systems flexibility for new channel Security Fraud Trust Reputation Image New Customer Acquisition Activation Rates Build new and stronger client relationships Regulatory changes Credit Losses Instant Availability of Replacement or New Cards PIN Selection / Change Personalized Designs Instant Availability of Purchasing Power Card Usage / Card Life Resources (Budgets) New entrants Account Income Account Balance Stagnation of lending activities Attrition Rate Economic climate

12 Instant Issuance Value Proposition ENHANCE CONSUMER EXPERIENCE SECURE ISSUANCE IMPROVE PORTFOLIO PERFORMANCE Branch Deployment Card Delivery Secure mounting (Kensington lock or bolt to table) Printers shipped locked. Software, physical keys and license Dual sign in control for printer unlock/lock If printer is stolen, valid cards cannot be produced Queued issuance option requiring manager sign in for printing Personalized card delivered to card holder Access control Audit Reporting Secondary authentication through HSM Configuration of User PC Authorized User Login Comprehensive Reporting & Card Inventory

13 Instant Issuance Value Proposition ENHANCE CONSUMER EXPERIENCE SECURE ISSUANCE IMPROVE PORTFOLIO PERFORMANCE Data Encryption All data communications encrypted to highest level supported between devices Data at Rest: (AES 256) Data in Transit: - CardWizard and CE870 (SSL&TSL) - Between CardWizard Services (WCF-TCP) Secure PIN selection (3DES + DUKPT) Full key smart card key management Keys Stored Centrally Strong integration with SafeNet HSM Compliance with standards PCI PA-DSS certified solution (audited by Coalfire Systems)

14 Value of FII: Security Core systems flexibility for new channel Security Fraud Trust Reputation Image New Customer Acquisition Activation Rates Build new and stronger client relationships Regulatory changes Credit Losses Control of data preparation and issuance Customer-selected PIN More secure than mailing Comprehensive branch & enterprise reporting Card Usage / Card Life Resources (Budgets) New entrants Account Income Account Balance Stagnation of lending activities Attrition Rate Economic climate

15 Instant Issuance Value Proposition ENHANCE CONSUMER EXPERIENCE SECURE ISSUANCE IMPROVE PORTFOLIO PERFORMANCE Increase activation rates Increase card usage Gain top-of-wallet placement Increased acquisition rate and cross-selling Instant Gratification: The Case for Instant Issuance in the United States Aite Group LLC 2014

16 Instant Issuance: New Revenue Generation Increased Card Usage SHIFT Approximately five additional transactions in first ten days LIFT Five additional transactions per month for 12 months INCREMENTAL REVENUE = SHIFT+LIFT INSTANT VS. MAILED ISSUED CARDS LIFT" SHIFT TRANS PER CARD WITHIN 10 DAYS OF ACCOUNT OPENING TRANS PER CARD WITHIN DAYS OF ACCOUNT OPENING ASSUMES DEBIT CARD TRANSACTIONS; HIGHER REVENUE FOR CREDIT MAILED INSTANT

17 Instant Issuance: Costs Reduction ENHANCE CONSUMER EXPERIENCE SECURE ISSUANCE IMPROVE PORTFOLIO PERFORMANCE Reduce emergency card replacement costs Reduce paper and mailing costs Instant issuance compliments central issuance Immediate postage savings Overnight mail charges can be eliminated PIN mailers eliminated or reduced Reducing mail fraud and never-received cards Reducing card replacement costs from cards lost/stolen when mailed Reduce the amount of small batch runs in a CI

18 Regulatory changes Core systems flexibility for new channel New entrants Credit Losses Value of FII: Profitability Security Fraud Account Income Trust Reputation Image New Customer Acquisition Top-of-Wallet Increase Card usage Increased Activation Rate Increase Revenue and Income Cost Reduction for Mailing Account Balance Stagnation of lending activities Activation Rates Cost Reduction for Replacement Cards Cross-selling Attrition Rate Card Usage / Card Life Build new and stronger client relationships Economic climate Resources (Budgets)

19 Benefits multiple functional areas of the banks Executive Management Provides competitive differentiator Improved portfolio performance Realized via operational cost savings and improved metrics Operations Reduced postage expense Reduced small batch runs Elimination of PIN mailers Additional reissue option Fraud reduction Product Marketing Increased activation Increased usage Potential new acquisition channel Improved key drivers/portfolio metrics Branch/Retailer Opportunity to cross-sell other products Creates positive customer experience Exceeding customer expectations

20 2014 Entrust Datacard Corporation. All rights reserved. CardWizard Overview

21 Workflow Using CardWizard iclient

22 #1 Solution fully integrated with CMS 38+ CMS Interfaces Faster integration and issuance 12+ interfaces embedded into the CMS platform (common GUI) 18+ Processor Interfaces Instant activation Standard Client (Nonintegrated) Integrated Client Primary Clients Custom or Embedded Host, Customer or DC Developed Production Queue Client Batch Client 1% of installations 74% of installations 24% of installations 5% of installations 5% of installations * Percentage > 100 due to multiple clients at some customers Custom UI CardWizard UI

23 #2 - Designed for your branch operations INSTANT ISSUANCE Emergency Card Replacement New Card Issuance PIN Selection/PIN Change Card Activation Comprehensive, Robust Reporting QUEUED ISSUANCE Cards sent to a queue, not needed instantly Manager approval or back office workflow Request received from Call center or Internet Banking channels. Customer required on site for PIN Selection or Image Capture LOW VOLUME BATCH ISSUANCE Reissuance Expired payment cards Recent breach incident Cards sent to a nearby or central location for printing

24 #3 - Instant issuance hardware options YOU HAVE THE POWER TO CHOOSE BEGINNING CARD STOCK OPTIONS BLANK PREPRINT PREPRINTED & EMBOSSED PREPRINT OUTPUT OPTIONS FLAT PRINT EMNBOSSED & FLAT PRINT FLAT PRINT EMBOSSED

25 #4 - Robust reporting and administrative tools Increase employee efficiency by reducing or eliminating manual tracking of cards issued Generate standard reports to give complete visibility into details of the card program Create reports for individual users or branch locations, or for all users and branches Easy-to-use administrative tools make it easy to conduct audits, track supply items and more

26 #5 - Cardwizard FII software - EMV Flexibility Card Format ATM (Mag Stripe) MasterCard (EMV) Maestro Debit (EMV) Visa Classic (EMV) Visa Gold (EMV) EMV Configurations One Configuration per Card Type or Dual Profile Support for one Card Type Card Vendors All Card Vendors Worldwide can be supported Chip Operating Systems MULTOS Select (Full) MULTOS Step One Global Platform All Native Chip Operating Systems

27 Driving Success Worldwide Integrated solutions systems, software, supplies and services Best practices refined in 35,000+ instant issuance engagements 2014 Entrust Datacard Corporation. All rights reserved.

28 Case Study: Carrefour bank Saved Eliminated Reduced Gained Time in compare to centrally issue cards PIN mailing costs Long process to get cards Non activated cards Time to queue and Pay using PayPass for less than 25 purchases New customers More payment generated Instant EMV card replacement services PIN Selection

29 Case Study: Carrefour bank OVER 12 MONTHS One Branch Pilot Installed Validation Process 50 Branches implemented in 50 majors Malls By issuing dual Interface EMV PayPass MasterCard cards instantly, Carrefour Banque became the first retail bank in Europe to provide this kind of innovative, convenient program for its customers. Cards are instantly issued and activated in their Financial Services desks and, customers can benefits from incomparable set of advantages

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31 Case study: Barclays Barclays is the largest EMV FII implementation in Europe Improved Maximized Reduced Gained Customer Satisfaction Customer retention Competitive position Customer contact Client Convenience Cross selling opportunities 3-5 day postal replacement delay to Zero Customer Feedback rating Control on EMV Keys Customer Touch and Reach OVER 12 MONTHS 10 Branch Pilot Installed Validation Process Over 300 Branches implemented

32 Case study: Barclays With the poor image banks have today, how do you get clients to say : completely satisfied as was emergency as needed for trip to London later today I wish the other banks did this

33 Testimonial The instant issuance program is defined in our overall business strategy as a tremendous added value. Our goal is to continue to improve our customers expectations and to make us the most admirable bank in our market. Instant issue provides instant gratification and peace of mind for our card holders and gives us that edge over our competition. - Tony Rasmussen Senior Vice President of eservices, Mountain America Credit Union.

34 Resources for your team white papers, podcasts Financial issuance blog EMEA Instant Issuance or