In this fast-paced world of retail banking, customer experience is key to standing out among financial institutions. In a survey conducted last fall of 1,000 consumers across four countries, we found that one of the most important elements of a best-in-class banking experience is providing immediate access to a payment card after opening a new account.
The Consumer Demand for Speed
Overall, 83% of survey respondents from Singapore, France, Chile, and the United States said the speed of digital account opening was important, or very important, when evaluating a financial institution. Consumers clearly want faster access to their finances when opening a new account.
Further, 79% of respondents indicated that instant access to a digital debit or credit card was important. This highlights a growing demand for instant, flexible payment solutions upon account opening.
Insights Across the Countries
We also discovered differences among the countries surveyed:
- 60% of respondents from Chile said instant access to a digital debit card is very important when opening a new deposit, savings, or checking account
- Instant access to a digital payment card is important to 91% of Chilean respondents, compared to 80% in France, Singapore, and the U.S.
- Only 5-9% of respondents in France, Chile, and Singapore said that instant access to a digital payment card is not important when deciding to open a new account
Interest Across Age Groups
When comparing different age groups from the four countries, younger respondents showed the highest interest in instant card issuance, with 88% in favor. However, there was still significant interest among other age groups, including older respondents, 65% of whom valued instant access. Even among the oldest surveyed, more than three out of five considered instant card issuance important – showing broad appeal across all ages.
So, Why Does Instant Card Issuance Matter?
Across all demographics and countries, instant card issuance is an important factor when consumers choose to open a new account. To remain competitive, financial institutions should consider offering digital account opening processes paired with immediate financial issuance capabilities to their cardholders. By doing so, financial institutions can increase customer acquisitions, remain relevant to their target customers, and differentiate themselves from the competition.
Customer acquisition is a main incentive for financial institutions seeking to implement a digital-first payment and account opening strategy. Cardholders can use their card immediately after opening an account, enjoying flexible payment options anytime, anywhere. It is clear that consumers are increasingly willing to switch banks for the right digital experience.1
In fact, 95% of digital cardholders use their card on the first day of issuance. Additionally, digital card issuance can drive a 10-15% increase in customer acquisition, 15% growth in transaction volume, and significantly reduce servicing costs and fraud.
A Seamless Solution for Financial Institutions
The Entrust Digital Account Opening solution enables seamless account opening, integrated with seamless payment card issuance. Our solution simplifies the customer onboarding process, providing an enhanced user experience, improved security, and increased profitability for financial institutions. Financial institutions can choose to complement this solution with the Entrust Digital Card Solution, allowing account owners to instantly issue a digital payment card as well, including debit, credit, or prepaid.
Read our digital-first banking report to learn more about consumer preferences related to digital onboarding, payment, and AI.
1Mastercard Digital First for Tech Enablers – Webinar, October 13, 2021, Capgemini World Retail Banking Report, 2021
