9 Key Factors to Evaluate in a Credit Card Issuing Program
Launching and managing a comprehensive credit card issuing program is a critical step for a community or regional bank looking to enhance its offerings, increase profitability and foster customer loyalty. A well-structured credit card issuing program can serve as a key differentiator, providing essential benefits to consumers, small businesses, and commercial clients of the bank. Selecting the right provider is critical to the success of this initiative, as it ensures that the program is robust, secure, turnkey, profitable and tailored to meet the diverse needs of different customer segments. Here are nine essential aspects to consider when evaluating potential credit card issuing programs and partners.
1. Technological Capabilities
In today's digital age, the latest technological capabilities are paramount. The credit card issuing partner should offer a robust and scalable platform that can provide advanced features.
· Real-time Application Processing: Ensure the platform can process applications in real-time, capable of providing instant approvals and declines to enhance customer experience.
· Fraud Detection and Prevention: Active management of fraud strategies with skin in the game to ensure fraud is balanced with customer experience. Enhanced security protocols such as 3D Secure to reduce online transactions fraud and chargebacks.
· Mobile Wallets: The ability to support mobile wallet services like Apple Pay, Google Pay, and Samsung Pay is essential.
· API Integration: An API-first platform that offers the flexibility to integrate with your bank’s online banking platform.
2. Compliance and Security
Regulatory compliance support and data security are important in the credit card industry. Your credit card issuing partner must help you adhere to all applicable regulations.
· PCI-DSS Compliance: Ensure the provider complies with the Payment Card Industry Data Security Standard, safeguarding cardholder data.
· Compliance Support: Support to help your bank navigate and comply with applicable regulations and guidelines.
· Strong Encryption Practices: Look for tokenization and data encryption to protect sensitive data.
3. Customer Support and Service
Excellent customer service can differentiate your credit card program from the competition. Evaluate the provider’s customer support and back-office capabilities.
· 24/7 Customer Service: Round-the-clock US-based customer service with experienced personnel is essential to address any customer issues promptly.
· Branch Support Hotline: Support for your branch personnel to reach out to resolve any customer issues or provide help.
· Back Office Services: Comprehensive back-office services, including dispute resolution, chargeback management, and account maintenance, to ensure smooth operations.
· Dedicated Account Management: A dedicated account manager who understands your bank's unique needs and provides personalized support.
4. Customization and Flexibility
Your credit card issuing partner should offer customizable solutions that can be tailored to your bank’s branding and customer needs.
· Branding Options: Ability to fully customize the card design, including logos and colors, and branding on portals and mobile apps for optimal user experience.
· Products to Fit Your Customers’ Needs: Flexibility to launch different types of credit cards, such as rewards cards, low-interest cards, and secured cards for all customer types including consumers, small businesses and sophisticated commercial cards with expense management features, and enhanced data reporting.
· Virtual Cards and ePayables: Support for virtual cards and electronic payables for commercial credit cards to enhance efficiency and control over business expenses.
· Spend Controls and Alerts: Tools to set and manage customizable alerts, spending limits and controls by the customer to manage their credit card spending.
5. Transparent Pricing and Financial Analysis Support
Understanding the financial aspects of the partnership is crucial. Evaluate the provider’s pricing structure and seek help with financial analysis to ensure alignment with your bank’s financial goals.
· Transparent Pricing Structure: Ensure comprehensive set fees, including setup costs, transaction fees, and all ongoing fees are clearly outlined. Simpler is better for predictability and check if you get nickeled and dimed on dozens of line items.
· Increase Return with Growth: Look for models where you can increase your profit margin as the portfolio grows to boost your bank’s profitability.
· Ongoing Financial Analysis: Some providers may offer financial analysis on an ongoing basis to track and help improve the credit card portfolio performance.
6. Cardholder Experience
A seamless and rewarding cardholder experience is essential for customer satisfaction and retention.
· User-Friendly Interfaces: Intuitive and state-of-the-art online for easy account management by end customers.
· Marketing Execution: Effective marketing execution for new account growth and marketing calendar to promote to existing customers.
· Mobile User Experience: A digital experience on mobile with real-time alerts, and mobile app with account management tools.
7. Data Analytics and Reporting
Data-driven decision-making is crucial for optimizing your credit card program. Ensure your provider offers comprehensive analytics and reporting tools.
· Transaction Data: Insights into spending patterns, transaction volumes, and customer behavior.
· Detailed Reports: Ability to track every aspect of the credit card program and generate reports that meet your bank’s needs.
· Performance Metrics: Quick access to key performance indicators to track the success of your credit card program.
8. Scalability and Growth Potential
Your credit card issuing program should be able to grow with your bank. Look for a provider that can scale their services to accommodate increasing volume.
· Scalable Infrastructure: Ensure the provider’s infrastructure can handle growth without compromising performance and has sufficient redundancy.
· Future-Proof Solutions: The provider should continuously innovate and update their offerings to keep up with industry trends and technological advancements.
· Support for Integration and Enhancements: Ability to support integration with key systems and enhance based on your bank’s needs is important.
9. Market Reputation, Partnership, and References
A successful credit card program requires a strong partnership between your bank and the provider, as well as a provider with a strong market reputation. Evaluate the partner’s commitment to partnership and their market standing.
· Strategic Alignment: Ensure the provider’s goals and values are aligned. Simply put, they make money when you make money.
· Team Experience: Ensure that the partner has deep experience with skilled employees in all aspects of credit card issuing and program management.
· Industry Reputation: Research the provider’s reputation within your peers and their track record of success. Seek testimonials and references.
In conclusion, choosing the right credit card issuing partner involves careful consideration of multiple factors, from technological capabilities and compliance to customer service and cost structures. By focusing on these nine aspects, your community bank can establish a successful and sustainable credit card program that meets the needs of your customers and enhances your financial offerings.
Visit corservsolutions.com or contact info@corservsolutions.com for more information.
About Author:
Anil Goyal is the CEO of CorServ, a company that provides innovative payment card issuing solutions to banks and fintechs. CorServ’s offering combines deep credit, compliance and marketing expertise with modern API-based technology to quickly build and manage a successful card-issuing program.