5 questions to consider about financial instant issuance

By Alyssa Arredondo, Director of Financial Vertical Strategy, Entrust Datacard

Financial instant issuance is picking up steam.

According to research from Aite Group, more than half of all financial institutions will offer FII by 2021. Wondering what's fueling the transition from a nice-to-have service to one customers can't live without? Consider some of the benefits FII brings to the table.

In addition to raising payment card activation rates, FII also stands to boost your bottom line. Around a third of payment card users say instant issuance would influence their choice of a financial institution.

Before reaping the rewards of FII, however, it may be wise to consider some important questions. From how to choose a supplier to which security measures you should implement, answering the following five questions can help pave the way for a seamless shift toward FII.

1. Which supplier works best?

There's more to a supplier than the sticker price. While it's crucial for a supplier's products to be both affordable and capable of generating revenue, reputation carries just as much weight. Leverage your network to get a sense of what it's like to work with potential suppliers.

New insights — including the type of training that's provided or the quality of their printers and cardstock — can go a long way toward revealing which supplier is the best fit for your FII strategy. It may also be helpful to gauge whether suppliers can customize products to meet your specific needs. The more personalization options available, the better chance you have of creating a consumer-centric FII program.

2. What does regulatory compliance look like?

Like it or not, regulations rule the day. Keep customers' personally identifiable information under wraps by ensuring your FII program meets all relevant regulations. The Payment Card Industry Data Security Standard, is one such standard that helps secure sensitive information. Achieve compliance by putting a plan in place for processing and storing payment card information.

Yet another regulation worth remembering is general data protection regulation. Among the newest and most complex regulations within the financial services industry, GDPR aims to shift power over personal data back to the people.

Hoping to stay up to date on such regulations? Try respecting the wishes of data owners. If a customer wants to know how his or her data is being used, it would be wise to offer up a detailed explanation. Increased transparency promises to elevate your chances of compliance.

3. SFP or SaaS?

When considering an FII program, you have to know who will take ownership of the server which stores data as well as your program's new cards. One solution — software for purchase — puts the power in the hands of financial institutions, while the other option — software as a service — shifts responsibility to cloud-based software and a server to the instant issuance supplier.

Making the right choice for your business starts with a few different factors — specifically cost and EMV key management. Usually chosen by larger banks, SFP can have higher onboarding costs. SaaS, on the other hand, offers payment card printing at any number of branches for just a fraction of the upfront cost.

As far as production keys are concerned, an additional decision must be made. Used to determine the numbers which appear on each payment card, such keys can be handled by either your employees — SFP — or the supplier — SaaS.

Considering the sensitivity of EMV production keys, either choose an instant issuance company with proven experience or make sure you're up to the challenge if you go with an SFP solution.

4. How will maintenance be handled?

Make no mistake — maintenance issues are sure to arise. Stay one step ahead by thinking about what the resolution process may look like. While some hardware issues may require a visit from a technician, others could be handled remotely.

In the event that a printer can't be fixed, make sure your contract outlines out how soon you can expect a replacement. The sooner it arrives, the less downtime you'll have to deal with.

Consider purchasing a spare printer for high-volume locations. When it comes to something more significant — such as a system failure — outline an emergency procedure and determine whether you or the supplier will be responsible for repairs.

Additionally, consider a solution that includes monitoring software that can identify maintenance problems as soon as they happen. Many banks currently use this for their ATMs but have yet to implement it in their card printers. Once they do so they can expect it to reduce downtime and improve the customer experience.

5. What should security look like?

Safeguarding your customer's personally identifiable information is critical for both you and your customer. There's no shortage of security measures recommended and required for payment cards either.

Each of the payment brands (e.g., Visa, Mastercard, AMEX) has unique recommendations surrounding the implementation of an instant issuance solution. Some of these security measures related to printers include: camera surveillance; dual printer unlock; card audit procedures; and reporting.

It is important to remember the security of the unseen — the data being transported between the printer and the software — looking for the highest level of security.

Additionally, while most instant issue programs provide a PCI-compliant program, only a handful provide a PCI-certified program. Implementing a non-PCI-certified program means a financial institution must undergo an audit by its payment-branded card provider requiring lengthy preparations.

It may be tempting to jump quickly onto the FII bandwagon. After all, seemingly everyone else is doing it. But be sure to take some time to think about what comes with the process. Tackling tough decisions — such as how to choose a supplier or what maintenance may be needed — in advance will help make for a smooth solution implementation.

Alyssa Arredondo has extensive experience in the financial services industry with expertise in instant issuance. Before joining Entrust Datacard, she spent 13 years at US Bank and HSBC Card Services, where she managed several large co-branded credit card portfolios.