The Issuance of Instant Bank (ATM) Cards In The Nigerian Banking Sector
The Central Bank of Nigeria (CBN) promoted financial inclusion using multiple methods. As a result, the banking sector experienced significant expansion and growth in Nigeria during the bank consolidation and recapitalisation era. One of the key drivers of this growth was using bank cards (ATM cards) to serve the unbanked and underbanked populations. This initiative ultimately led to a substantial increase in financial inclusion. Various entities such as the Federal Ministry of Finance, CBN, financial institutions, and other service providers played pivotal roles in this process - banks designed and developed various techniques to expand their reach and grow shareholders' value(s).
Konnectronics Ltd led the way in issuing instant bank cards in the Nigerian financial sector. Through this instant issuance process, personalised and activated bank cards were hand-delivered to customers at bank branches or other designated business outlets. This secure method ensured that customers left with cards in hand, ready for immediate use.
The instant issuance solution aimed to address the following
a. Delays in card processing and personalisation by card bureaus.
b. Business risks associated with the lack of control over cards until arrival from bureau centres. A card loss or misuse could lead to reputational damage and high costs for the issuing banks.
c. Non-secured and costly transportation, including insurance premiums in the event of lost shipments, resulting in a high cost of issuing bank cards.
To overcome these challenges and provide efficient bank cards to customers, Konnectronics collaborated with stakeholders within the banking sector to promote instant issuance of bank cards in Nigeria.
Today, the issuance of bank cards is ubiquitous, but at the time, it was a novelty. The issuance of instant bank cards offers multiple benefits, including:
1. Immediate Card Issuance:
- Full card issuance
- Guaranteed security at any point in the process
- Direct delivery without shipment costs
2. Improved Services:
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- Increased customer commitment by delivering cards on demand
- Ability for customers to choose and change their PIN instantly
3. Marketing:
- Reinforcement of bank brand image and efficiency
- Creation of new sales opportunities for additional services and programs
- Improved customer loyalty
4. Business:
- Increased card acceptance, activation, and usage
- Improved return on investment (ROI)
- Elimination of associated costs of personalization and others.
Konnectronics pioneered many initiatives in the financial/banking sector, this is one of them. We believe, playing a catalytic role improved the industry and the nation at large.
Political Affairs, Peace and Security, ECOWAS Commission. Former Foreign Affairs Editor at The Guardian Newspaper
6moYes, that was a financial revolution. Necessary recognition must be given to the pioneers, even as we expect continuous growth and perfecting of the system already created.