Financial Instant IssuanceFinancial Instant Issuance
Gain new Clients and enhance your Service offeringGain new Clients and enhance your Service offering
Krajnska Gora, Slovenia, 27 February 2013
Petr Trombala
AGENDA
Gain new Clients and enhance your Service offering
• Datacard Introduction
• FII definition
• Case Studies
• Q&A
Datacard® History
1970s 1980s 1990s 2000s TodayPartnered with
AmEx and Sears to
Pioneered inline card
personalization
Integrated color imaging, laser
engraving, t d
Launched EMV and other smart card i iti ti
yVast majority of financial cards
worldwide li denable
credit cards
smart card personalization
other key technologies
initiatives personalized with Datacard
solutionstechnologies
L d i li ti f
DatacardLeader in personalization of:
Financial cards Passports Identification cards and secure documents Identification cards and secure documents
• Preferred partner for financial institutions and government agencies
• Service and support in 120 countries
• Datacard Solutions per day:• Datacard Solutions per day:
Personalize and deliver 12M
Personalize over10M
Personalize500K
12M cards centrally and
remotely
10M smart cards
PP, NID and DL
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DatacardMarket Leader in Instant Issuance
25,000 instant issuance
installations worldwide
More than 7,000 Leading instant
issuanceCardWizard®
installations
issuance provider for Visa and MasterCard
debit cards
Over 200 successful EMV
More than 700 Financial
installations worldwide
15 years of
Institutions with CardWizard®
15 years of instant issuance
experience
WHAT IS INSTANT ISSUANCE?
What• Issuance of permanent, personalized
debit/credit/prepaid cards
Where• Bank/ branches (debit/credit)• Retail stores (credit)debit/credit/prepaid cards
• PIN • Retail stores (credit)• Colleges/Universities (debit)• Events (credit)
Att d d ki k ( dit)• Attended kiosks (credit)
INSTANTLY ISSUED CARDS – “SHIFT AND LIFT”
Approximately four (4) INSTANTLY VS. CENTRALLY ISSUED CARDS
“LIFT"additional transactions in first ten days
Four (4) transactions
11.30
Four (4) transactions@ 0.225*
$.90 per year/cardholder*4 00
7.40
“SHIFT”
0.20
4.00
TRANS PER CARDWITHIN 10 DAYS OFACCOUNT OPENING
TRANS PER CARD WITHIN 11-45 DAYS OF
ACCOUNT OPENINGACCOUNT OPENING ACCOUNT OPENING
INSTANT MAILED
ASSUMES DEBIT CARD TRANSACTIONS; HIGHER REVENUE FOR CREDIT
CASE STUDY : ACTIVATION RATES
50 Branches
OVER 12 MONTHS
One Branch Pilot Installed
Validation Process
50 Branches implemented in 50 major Malls
By issuing dual Interface EMV PayPass™ MasterCard® cards instantly, Carrefour Banque became the first retail b k i E t id thi ki d f i tibank 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 benefitsFinancial Services desks and customers can benefits from incomparable set of advantages
Financial Instant Issuance by Retailers
Activation rates remain15 percentage points higher among instantly issued cards, after 30 days (90% vs. 75%)
Bergamini in Sao Paulo, BrazilSources: Carrefour Banque CSA Club presentation, November 19th,2010
g ,
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• In 2007, Green Bank began researching long term strategies to increase debit card activation and usage
– At that time, nearly 33% of new customers were not using their card.
• Fii Vendor Requirements:– Ability to support multiple debit card types in one card
printer– This would simplify branch operations by eliminating
the need to store and manage multiple types ofthe need to store and manage multiple types of cardstock in the branch
– Proven, straightforward security features that meet or exceeded MasterCard standardsexceeded MasterCard standards
– Compatible with existing account opening process and Jack Henry, the bank’s core processor
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IMPROVED PORTFOLIO PERFORMANCE METRICS
Personalized Photo Cards – BBVA Compass Bank Study• 3% better account retention• Higher customer loyalty and engagement that leads to higher cross-sells• $45 incremental yearly revenue per card from personalization based on additional
usage and interchange revenueE i t bl k d t k i t i b h/ t i t d t k• Easier to manage blank card stock inventory in branch/store vs. pre-printed stock
Source: BBVA Compass Bank extended case study results using Serverside Technology for debit card program
CASE STUDY: COST PER CARD
SOME HARD NUMBERS
SCENARIOSC O
40 DEBIT CARDS ISSUED PER MONTH40 DEBIT CARDS ISSUED PER MONTH
COST PER CARD ISSUEDCOST PER CARD ISSUED:
Instant : $7.50* Central : $1.50*
*$300/month fixed cost for Branch Issuance
INSTANT ISSUANCE MAXIMIZES CARD PROGRAM PERFORMANCE
CENTRAL ISSUANCE BRANCH ISSUANCE
Shift Incremental Revenue Per Card: $0
Shift Incremental Revenue Per Card: $.90
Lift Incremental Revenue Per Active Card: $0
T t l I t l
Lift Incremental Revenue Per Active Card: $10.80
Total IncrementalRevenue: $0
Cost to Issue: $1 50
Total IncrementalRevenue: $11.70
Cost to Issue: $7 50Cost to Issue: $1.50
Profit Per Card Issued:
Cost to Issue: $7.50
Profit Per Card Issued:Profit Per Card Issued:($1.50)
Profit Per Card Issued: $4.20
Data is based on first year
Personalization Flexibility
Mag Stripe Card, Fob, “Go Tag”
PayPass® PayWave®
Contact ContactlessEmbossed
or Flat
Go‐Tag , Phone
PayWave® Contactless RFID NFC
End‐to‐end encryption for proven security
