Financial Instant Issuance Gain 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 Today Pioneered Integrated color Launched EMV Vast majority of inline card imaging, laser and other financial cards personalization engraving, smart card worldwide Partnered with AmEx and Sears to enable credit cards smart card personalization other key technologies initiativesiti personalized with Datacard solutions
Datacard Leader in personalization of: Financial cards Passports Identification cards and secure documents Preferred partner for financial institutions and government agencies Service and support in 120 countries Datacard Solutions per day: Personalize and deliver 12M cards centrally and remotely Personalize over 10M smart cards Personalize 500K PP, NID and DL 4
Datacard Market Leader in Instant Issuance Leading instant issuance provider for Visa and MasterCard debit cards 25,000 instant issuance installations worldwide More than 7,000 CardWizard installations More than 700 Financial Institutions with CardWizard 15 years of instant issuance experience Over 200 successful EMV installations worldwide
WHAT IS INSTANT ISSUANCE? What Issuance of permanent, personalized debit/credit/prepaid cards PIN Where Bank/ branches (debit/credit) Retail stores (credit) Colleges/Universities (debit) Events (credit) Attended d kiosks k (credit)
INSTANTLY ISSUED CARDS SHIFT AND LIFT Approximately four (4) additional transactions in first ten days INSTANTLY VS. CENTRALLY ISSUED CARDS LIFT" 11.30 Four (4) transactions @ 0.225* $.90 per year/cardholder* SHIFT 400 4.00 7.40 0.20 TRANS PER CARD WITHIN 10 DAYS OF ACCOUNT OPENING TRANS PER CARD WITHIN 11-45 DAYS OF ACCOUNT OPENING INSTANT MAILED ASSUMES DEBIT CARD TRANSACTIONS; HIGHER REVENUE FOR CREDIT
CASE STUDY : ACTIVATION RATES One Branch Pilot Installed OVER 12 MONTHS Validation Process 50 Branches implemented in 50 major Malls By issuing dual Interface EMV PayPass MasterCard cards instantly, Carrefour Banque became the first retail bank 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 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%) Sources: Carrefour Banque CSA Club presentation, November 19th,2010 Bergamini in Sao Paulo, Brazil 9
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 of cardstock in the branch Proven, straightforward security features that meet or exceeded MasterCard standards Compatible with existing account opening process and Jack Henry, the bank s core processor 10
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 revenue 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 SCENARIO 40 DEBIT CARDS ISSUED PER MONTH COST 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 Lift Incremental Revenue Per Active Card: $0 TtlI Total Incremental Revenue: $0 Cost to Issue: $1.50 Shift Incremental Revenue Per Card: $.90 Lift Incremental Revenue Per Active Card: $10.80 Total Incremental Revenue: $11.70 Cost to Issue: $7.50 Profit Per Card Issued: ($1.50) Profit Per Card Issued: $4.20 Data is based on first year
Personalization Flexibility Mag Stripe Embossed or Flat Card, Fob, Go Tag Tag, Phone PayPass PayWave Contact Contactless RFID NFC End to end encryption for proven security
Questions? Petr Trombala Financial Instant Issuance Solution Sales Manager petr_trombala@datacard.com 16