In an increasingly time-constrained world, waiting several days for a new or replacement debit card has become less acceptable for many bank customers ”” a reality that Danbury”™s Union Savings Bank is embracing.
“We have a pretty vigorous voice of the customer system at our organization,” said Peter Scotch, the bank”™s senior vice president, director of Innovation Center. “We”™re always listening to what they”™re asking for and eliminating the week to 10 days it normally took to receive their debit card was at the top of the list.”
When an existing customer”™s debit card is lost, stolen or compromised, Scotch said, visiting a branch to obtain a replacement card that”™s printed and issued on the spot can be a great benefit.
To start the card replacement process, one of the bank”™s customer service team members verifies the customer”™s identity, then prints the card, all of which takes place in a secure environment. The customer then activates the card and selects a personal identification number over the phone via a secure interactive voice response system.
Instant issuance also allows for new customers to gain full access to their funds when the account is opened so that they can begin using their card immediately.
USB also offers digital instant issuance to serve what Scotch said is an increasing number of customers using mobile wallets on their iPhones and Apple Watches to make purchases. As for other services like Google Pay and Samsung Pay, Scotch said that while they are not directly linked to the bank”™s mobile app, customers can easily set up those options as well.
For added protection, USB offers Debit Card Controls ”” available within the USB Mobile app ”” which allows customers to turn debit cards on or off in real time, reducing the risk of fraud if cards are misplaced.
While instant issuance is becoming less of a rarity in the banking world ”” First National Bank, PNC and Bank of America are among those offering the service ”” Scotch said it is still new enough to give a smaller mutual bank (Union Savings Bank has approximately $2.8 billion in assets and operates 25 offices throughout western Connecticut) a competitive edge.
Last year, a survey by Independent Banker magazine found 17% of community bank CEOs named instant issuance as the technology they were considering to meet operational needs.
“Experts say (such technology) can enhance the customer experience, enable card personalization, decrease costs and generate revenue,” the publication said.
The timing for USB is particularly fortuitous, Scotch said, given the jump in U.S. retail sales announced earlier this month.
“A lot of people received their stimulus checks,” he said, “which resulted in a huge bump in debit card activity. We”™ve seen a ton of usage from that.”
USB customer reaction has been overwhelmingly positive, Scotch said. Noting that instant issuance was in part a direct outgrowth of USB”™s rolling out of a contactless debit card last year, he said, “We are always on the lookout for the new products and services that our customers want to see.”
