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Now is a key moment in card innovation

By Christopher Jacoby

“If we brought in a new CEO, what would they do?”

When Andy Grove asked Gordon Moore, chairman of Intel’s board, this question in 1985 to determine whether Intel should stay in the memory business, Gordon Moore answered the question without hesitation, “He would get us out of memories.” Then Andy Grove prompted Gordon Moore, “Why shouldn’t you and I walk out the door, come back and do it ourselves?”

This led to Intel divesting of its memory business, its original business, and to focus on its microprocessor business.

This moment in Intel lore delivers a key lesson in innovation: challenge the status quo and create products and experiences that consumers demand today.

The payment space is currently facing a similar moment . The physical cards and payment infrastructure most people use on a daily basis were invented decades ago, when smart watches were considered technological marvels that only the Jetsons could use, in the year 2062!

Despite what futurists from the 60s thought, we’re already living in a world where smartphones and smart devices are ubiquitous. It is therefore critical to deliver digital-first experiences to financial customers that are easy-to-use, simple and engaging across all aspects of the banking relationship, including their debit and credit cards. This allows financial institutions to build and cultivate a relationship with their cardholders daily and across all devices.

Digital First Cards

In a recent report, Aite states that “Digital-first describes the preference toward digital products, services, and functionality over legacy, physical alternatives. A great example in card programs is the issuance of a digital card or card number to conduct transactions, followed by a physical card that arrives later. Technically, “digital-first” only exists when there is a physical alternative. The digital card is instantly issued to the cardholder’s smartphone upon approval and then the physical card is subsequently mailed.”

The new card arrives in the consumers digital wallet almost instantly, and is ready for the cardholder to tap to pay or pay online before the physical card arrives in the mail.

Key Features and Benefits

In addition to being able to immediately use the card, a digital-first card experience should come with enhanced functionality that gives the cardholder full control via a mobile app of their debit or credit card across the entire payment lifecycle.

• Get and use a card quickly.
Frictionless end-to-end onboarding, combined with immediate access to a digital card, provides applicants with easy access to funds. Issuers gain the ability to remain top-of-wallet and drive immediate spend.

• Manage with self-service.
Empower consumers with controls and assisted self-service to turn cards on and off, manage geographic and retail limits, report a card lost and more.

• Understand spending.
Provide purchase clarity and enhanced data, analytics, and insights to provide deeper understanding.

• Engage with perks.
Interact with consumers through contextual alerts and relevant offers, bringing both guidance and delight in the moments that matter most.

Partner with Ondot to deliver digital-first card programs

Ondot’s Card App can help financial institutions quickly deliver a digital first card experience. Several clients have launched a digital first card and mobile app this year including:

  • American State Bank
  • Directions Federal Credit Union
  • Envista Credit Union
  • Horicon Bank
  • State Bank of Southern Utah
  • United Community Bank (UCB)
  • Utah Community Credit Union (UCCU)

Ondot’s technology platform and long-standing partnerships and relationships with payment networks, mobile banking providers and processors make It simple for thousands of financial institutions to offer a digital-first card.

Register for a demo to learn more