A new report from Entrust finds that larger U.S. financial institutions with digital card issuance plans are well-positioned to use AI to dramatically improve the process. Areas where AI can help include friction reduction, improving compliance and KYC, simplifying onboarding, fighting fraud, and accelerating time-to-activation.
While considering the process, FIs cannot ignore UX, both online and in-person. Together, these aspects can improve customer satisfaction, security, and card utilization rates.
Key findings
- Only 37% of institutions offer both instant physical and digital card issuance – leaving a clear opportunity to stand out in a concentrated market.
- Financial institutions are seeking instant card issuance solutions to promote immediate spending and streamline onboarding.
- 1 in 3 banks and credit unions surveyed say delivering a seamless end-to-end journey is a top priority.
- 89% of financial institutions still rely on central issuance methods, which indicates that additive strategies, not replacement, are key during digital transformations.
- Combining physical and digital card issuance drives higher activation and customer satisfaction.
- There’s a clear shift toward AI-powered KYC solutions, with 21% of FIs stating it is their top priority, and many more listing it within their top three.
- Technology limitations, data security, and privacy, and lack of integration with existing systems are the biggest blockers to delivering both instant physical and digital issuance.
- For many FIs, integration and infrastructure challenges are the biggest hurdle to offering omnichannel issuance.
- Nearly 90% of FIs still use traditional mail delivery for physical issuance.
- 37% rank push-to-wallet capabilities among their top strategic priorities.
- 67% plan to add digital card features in the next 12 months.
- Institutions are investing in in-app controls and personalization to boost engagement and loyalty.
- Tokenization is a key priority for decision-makers, signalling a shift toward embedded protection.
The report concludes with five key pillars supporting a successful digital card issuance strategy, beginning with a successful omnichannel strategy. Issuers are also encouraged to stress UX and security, embrace AI, and see the branch as an experience hub.
