Gen Z Banking & Card Issuance

//Gen Z Banking & Card Issuance

Gen Z Banking & Card Issuance

NOW IS THE TIME TO FIND HARMONY BETWEEN INSTANT ISSUANCE & CENTRAL ISSUANCE

With over 6 different Generations currently living – each has their own idea of how their relationship with a financial institution should be managed. Perhaps this current generation, GEN Z,  is the most unique to define…and you better be prepared to meet their Gen Z banking needs.

Many financial institutions overlooked Millennials. Most waited too long to go after them and then were frustrated when they banked with the FI down the street.  Granted, the thinking was that those teenagers were not profitable, so they were easily dismissed. But Millennial adults are profitable now!

If there is a lesson that FI’s can learn from our Millennial friends, it’s that retail financial institutions must start building relationships with consumers while they are still young, or they risk missing out on opportunities to help shape their financial perspectives while building brand preference. If the Millennial train passed you by, here’s your shot at redemption. SAY HELLO TO GEN Z BANKING.

According to The Financial Brand, virtually everyone in Gen Z uses social media at least once a week. They are willing to get financial services from a technology company and they embrace alternative payment methods like person-to-person (P2P) services.  Within Gen Z banking there are three different types of  customers:

  • CONVENTIONALS (34%) –They like the face-to-face interaction that can get at traditional financial institutions. Conventionals are even distrustful of technology companies encroaching in financial services.   Instant Issuance was designed for them!!
  • DIGITALS (37%)Like conventionals, digitals like traditional banks and credit unions, but prefer to interact digitally. They don’t see tech companies replacing their relationship with their PFI. Maybe a 50/50 fit for Instant Issuance…but prefers to work online and will be moving more that direction. Your opportunity to work with them face to face lessens daily.
  • PIONEERS (28%)They are more accepting of technology companies as financial providers and more distrustful of banks and credit unions. They’ll use traditional financial institutions only when they have to.  OUCH – how do we change that mentality – worrying about Top of Wallet is out but grabbing a bit of Gen Z bandwidth is the new goal.  They don’t give a flip about the number of branches or the newly resigned lobbies, but rather how easy can I access and use funds and what perks can I get along the way.

So how do you get your card in their wallet, or on their phone, and minimize your cost as well as expedite delivery times? How will you reach the 28% of Gen Z banking Pioneers who may never set foot in your building…are you willing to let 28% of your future revenue Google™ away to the online institutions?

Remember earlier in the article when I said you better be prepared?   Instant Issuance meets some of your clients’ needs, but have you thought about these options that Centralized Card Issuance can offer:

  • Adding a new card type to your portfolio however the rollout quantities are minimal and the cost to outsource them to a service bureau will cut into your potential revenue with all the production fees, personalization fees, overnight shipping, – not to mention lead times.
  • Personalization of payroll card, HSA /FSA cards allowing client cards to be co-branded– Imagine the marketing power when a company can have THEIR logo on a card!
  • Unique card materials and designs – perhaps you want to roll out Metal, Clear or even Vertical cards. Central issuance can give you the flexibility to do just that.
  • Gift or Pre-Paid Cards – imagine saving money by ordering “blank” Artista cards and then personalizing them with the season or event you want to market to. Consider a company who wants to give their employees a bonus or holiday card – being able to put their logo on the card all the while utilizing 1 BIN could be a game changer!
  • You want to create an On-Line Branch that allows for account opening, and card ordering, but can still meet the KYC requirements. You can handle all the online details and regulatory elements, but how do you manage the cards?   Back office central issuance is the answer!
  • Mergers and Acquisitions – we see it happen every day. Managing multiple card programs can be exhausting and costly, but rolling them into one might be the perfect fit.  You will have the ability to personalize stock to the desired market and can work towards a uniform stock, chip type, and take advantage of larger quantity discounts.
  • Want to increase your card portfolio offerings, minimize the cost of issuer processing and stay away from lengthy and expensive contracts? Or perhaps you just want to work with an issuing processor who is truly relationship minded and works with a personalization expert locally…we have the perfect solution.

QRails – Diamond Business is an elite partner for QRails and that alliance allows us to help you create new programs without the restraints or cost of your current contracts.   Be it physical cards, virtual cards or even loyalty processing for sports teams, entertainment venues, retailers or amusement parks.

Learn how one Leading Regional Bank made the move:  https://www.qrails.com/wp-content/uploads/2018/11/qrails-amarillo-press-release-final-220518.pdf

No matter which of the above points peak your interest, there is no expense in exploring Central Issuance and learning if it is a fit for your Institution.  Not finding a way to tap into the 28% of Gen Z’s that may never set foot into a brick and mortar bank is a cost your Institution may not be able to live with.   Let us help you be ready to grow today and for the future.

Contact us today   Diamond Business Services, Inc.   806-373-4148 | 800-749-9025     charlia@diamondbusiness.net

 

 

By |2019-02-19T12:47:35-06:00February 19th, 2019|Categories: Uncategorized|Tags: , , , , |

About the Author:

Charlia Pence
Charlia Pence is the President of Diamond Business Services and has over 28 years experience in the industry.