Row of many kiosks showing the wide reach of banks that utilize instant issuance for cards
#Card

Instant issuance to usher in a new era of banking

Technical Innovation
6 Mins.

In today’s fast-paced society, banking has not escaped consumers’ demands for instant service or information. Instant card issuance kiosks meet the expectations of convenient, on-demand banking services by removing the need to visit a branch. At the same time, they increase banks’ footprint and improve banking reach into underbanked communities

A woman using instant issuance on a kiosk with other customers also using kiosks in the background
Kiosks are a great way to increase customer satisfaction by providing faster and more convenient ways of banking.

When the ATM was first introduced over 50 years ago, it ushered in a new age of automated banking. Former Fed Chairman Paul Volcker referred to it as “the most important financial innovation of the 20th century.”1 The humble ATM reduced payment processing costs, enhanced banks’ efficiency, improved the overall customer experience, and increased bank penetration. While the ATM’s functions for cash and check handling are still a crucial element of modern banking, there are more 24/7 services that customers could now benefit from.

In the era of digital banking, COVID-19, and instant gratification, banks must keep pace with rapid changes in customers’ expectations. Intelligent banking kiosks, such as those that can be used for instant issuance, enable banks to keep up with such challenging demands. New solutions such as self-service banking, tap-and-go contactless payment technology at point-of-sale (POS), or biometric technology at ATMs help banks to adapt to the “new normal,” which has arisen from COVID-19 impacts like reduced opening hours, limited contact between people, and increasing shutdowns. As we move towards smart cities in which processes are seamless, connected, and intuitive – and queues tend to be a thing of the past – banking services must get up to speed. The revolution of automated self-service banking that began 50 years ago is certainly here to stay – however, the rate of change will only increase, making constant adaptability a must.

“The prioritization around self-service has never been more important“
Simon Powley
Head Global Advisor Consultant for Diebold Nixdorf

Self-service kiosks

Studies have shown a strong link between self-service technology and heightened customer satisfaction and loyalty.2 Tablet and mobile banking applications, cardless transactions, and instant issuance kiosks increase banks’ flexibility, better enabling them to keep up with customers’ demands for instantaneous, around-the-clock service. Somewhat paradoxically, consumers want digital convenience while maintaining some physical interaction, and to merge premium service with maximum safety. Simon Powley, Head Global Advisor Consultant for Diebold Nixdorf, told Fintech News, “The prioritization around self-service has never been more important … to transform chaos into something good for the organization.”3

According to Mordor Intelligence, the bank kiosk market is expected to grow at a rate of 28% annually between 2020 and 2025.4 Face-to-face interaction will remain important, as people will always want to talk to a person about sensitive or complicated financial topics. However, if banks are not supplementing human interaction with convenient, digital alternatives that can be easily updated, they will be left behind. Self-service kiosks present a win-win for both customers and financial institutions, who can easily create more digital touchpoints in their banking ecosystem.

The significance of instant issuance

Instant issuance allows personalized payment cards to be issued in as little as 10 minutes, activated on the spot and used immediately. Customers deeply value such on-demand, customized solutions. In fact, the majority of consumers say a seamless, end-to-end experience is the most important consideration when opening a bank account.5

By shortening the time between customer acquisition and card activation, as well as between sign-up and the first use of the card, customers reduce idle time between old and new or replacement cards, and banks can gain a higher number of more loyal customers. According to a customer survey from Giesecke+Devrient, kiosk technology increases usage of all card activations by 35% in the first month alone. A survey from AITE also showed that the usage of instantly issued cards increases top-of-wallet considerations related to improved customer experience.6 The simplified process allows customers to avoid cumbersome bank visits, lengthy phone calls to customer service, or unnecessary time waiting for card delivery. In addition, reducing face-to-face interactions in the current global pandemic helps to keep both customers and employees safe.

From security to inclusivity

However, the greater convenience afforded by kiosk technology does not lead to a drop in security levels. G+D’s proprietary encryptions, for example, can be used to ensure secure card issuance. Stringent verification procedures are combined with sophisticated technology to deliver convenient digital enrollment, instant background checks and sensitive information, such as the card’s PIN. Instant card issuance at a banking kiosk significantly reduces fraud risk from cards or PIN mailer interception, and makes the onboarding processing much simpler.

On top of simplifying processes, off-site banking kiosks also encourage greater banking inclusivity. According to the World Bank, 1.3 billion people around the globe – mostly from lower-income groups or rural areas – remain unbanked.7 Without bank accounts, it is difficult for governments to provide people with aid, payments, or subsidies – from agricultural subsidies to medical insurance claims. By lowering initial investment costs and additional human labor costs for maintaining branch operations, kiosks allow banks to extend their services to customers in rural areas. Instant card issuance kiosks act as a scalable and cost-effective solution to expand banks’ reach and footprint, thereby enabling customers in these locations to take advantage of innovative card solutions. 

In the future, governments could even use intelligent banking kiosks as tools to securely and effectively distribute government aid, funds, and subsidies to families living in rural areas. Indeed, banking won’t be the only sector to benefit from kiosks – from self-ordering kiosks in restaurants to smart-city public kiosks offering free Wi-Fi, trip planning, public notifications. and security alerts. Through ongoing collaboration with artificial intelligence and visual capabilities, kiosks will only become faster, more convenient, and more intelligent: an exciting evolution in self-service, which started with the humble ATM.

  1. “Cash and Dash: How ATMs and Computers Changed Banking,” 2019

  2. “The Impact of Technology-Based Self-Service Banking Dimensions on Customer Satisfaction,” IJBISS, 2015

  3. “Why self-service banking is essential in a post-pandemic world,” Fintech News, 2020

  4. “Bank Kiosk Market,” Mordor Intelligence, 2019

  5. Mastercard

  6. “Instant Digital Card Issuance,” AITE, 2020

  7. “Financial inclusion on the rise,” The World Bank, 2018

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