Global Banks Embrace Flat Card Technology
Flat card revolution sweeps banks globally! Discover why 77% embraced this futuristic tech for enhanced branding, efficiency, and profits.
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In a recent survey conducted by Entrust across 10+ countries, including the UAE, banks, payment companies, and credit unions overwhelmingly reported that flat card technology has accelerated and shifted into overdrive. What may have been originally considered an “unimpressive” change to the look of traditional embossing, flat cards have evolved into a financial issuance mainstay with astonishing designs and an elegant chic finish.
Flat card adopters
Most interestingly, the survey highlights that 77% of surveyed financial institutions are actively issuing flat cards today. North America and Europe lead the way as they are typically the first global adopters of innovative technology, with large banking headquarters on both continents.
Meanwhile, the Middle East has been actively modernising its payment systems, introducing immediate payment initiatives to enhance the existing infrastructure and drive digital adoption. For instance, the UAE Central Bank’s Financial Infrastructure Transformation (FIT) program outlines the National Payments Systems Strategy to introduce new payment features and improve the existing architecture.
Given the significant customisation and efficiency benefits of flat technology, UAE banks should consider its adoption in their payment systems. Although embossed cards still exist in the Middle East and Africa, the growing traction of flat technology in the payment industry calls for banks in the region to embrace this technology to maximise its benefits.
Flat card technology adoption drivers
Equally compelling, when asked why organisations choose to move to flat cards, 73% of survey respondents identified two key components: enhanced branding opportunities and modernising traditional designs. Additionally, 60% cited reduced cost and/or increased efficiency as the secondary driver, followed by maintaining a competitive advantage, staying relevant in the marketplace, and consumer demand.
When evaluating the factors influencing their decision to adopt flat card technology, respondents were almost evenly split between competitors driving the technology and marketing-driven requests in their go-to-market strategy, with competitors holding a slight edge. More specifically:
- Among project management respondents, 36% attributed adoption to the need to stay competitive, while 26% attributed it to marketing directives.
- Among those in payment roles, 43% indicated that adoption resulted from marketing department requests, with 30% attributing it to competitive pressure.
An alternative interpretation of the data reveals that internal requests, originating from marketing and operations, drove slightly over half of the adoptions, accounting for 51%, surpassing the influence of external factors such as competition (36%) and customer requests (9%). It is worth mentioning that adoption rates in this context are comparative within the nature of the survey. Migration to innovative technologies typically includes elevated levels of consumer demand early in the product roadmap process.
Flat card technology features
The value proposition becomes clearer as financial institutions and fintechs migrate to flat cards. Customers demand fresh designs, a customisable platform, and the ability to connect with loyalty programs or niche movements like eco-friendly formats. Flat cards are delivered. Period.
When asked about the customisable features and benefits offered by flat cards, respondents cited the following as the most frequently utilised within their issuance arsenal:
- Personalisation on the card’s back, allowing the entire card front for financial institutions to highlight their brand
- Vertical card orientation
- Metallic personalisation
- Enhanced personal account number (PAN) features
Flat card technology outputs
Simply, a flat card drives business. Upon adoption of flat cards, 77% of respondents saw an increase in transaction volumes, including 61% of those who experienced one per cent to 25% increase and 15% realising greater than 25% growth by volume. This is the most compelling evidence for any issuer considering the value proposition of switching to flat cards, making it nearly impossible not to draw significant conclusions about ROI and the decision to switch without delay.
The secondary responses in this category paint a beautiful picture – flat cards save money. 64% saw machine efficiencies and additional cost savings, while another 40% cited third-party issuance efficiencies.
For anyone needing a reason to immediately evaluate the impact of flat cards on their business and, in turn, customer satisfaction, this is where the undeniable evidence is crystal clear. Banks that have adopted flat cards are experiencing higher transaction volumes and lower costs. The icing on the cake? 92% highlight their enhanced capacity for personalised customisation. Can it get any better than this?
Flat card future predictors
Can we predict the future of flat cards? Not quite. However, our survey respondents are certainly leading us down a favourable path. For those financial institutions not currently issuing flat cards, 56% plan to do so in the next two years, while 35% are exploring options to consider this newer technology.
A final thought on future predictors: 61% of those who have not adopted flat cards have invested recently in new issuance systems. Although we do not know exactly what type of equipment or systems, this highlights the simple fact that options exist and machine lifecycles are long. We also know that certain geographies or regions continue to demonstrate some demand for traditional embossed cards – they play a significant role in perceived value. They probably will continue to do so shortly.
Entrust continues to support the flat card movement, bridging the gap between personalisation equipment, secure customer interactions, and the latest technology and innovations in high-volume central and instant financial issuance for this technology.
