Challenges in Card Program

Total debit/credit cards in circulations = 1.01 Billion 💳

Total transactions count via debit/credit cards = 1.6 Billion 🏦

Total transactions value via debit/credit cards = ₹5.38 Trillion or $65.6 billion 💰

Having said that, India is still largely an underpenetrated market, and only 3% of the population has a formal credit card.

These cards can be issued by a Bank or by a Neobank/bank partner which eventually becomes a co-branded card. 🤝

A co-branded card works as a new program for bank, which eventually builds a new revenue line for them and some specific benefits to the customers.

💪But launching a new card program brings their own challenges.

Such as :-

1. 📝Onboarding Issues —

A co-branded card comes with usually vKYC or eKYC program. Paper KYC is not appriciated. User’s mobile camera is not working, PAN is not available, background is not clear and what not are some cases of vKYC. Whereas in eKYC Pin code is not accessible, customer is not available at the time of onboarding, biometric device not working and more are some challenges. You start with low success rate starts with and later optimize the flow.

2. 🏧Transactions —

Now that your have onboarded a customer, you want them to make a payement. But before they do so, you want to test that with all payment points. It can be PoS machines build by different vendors, popular websites, channel control, limits, major payment gateways and alot more. A new card product or even a program at bank level need multiple configureations at core banking infra, Host, switch and neobank infra also(if required).

3. 👀Customer Experience —

The banking APIs might work really well. They are fast and reliable, giving good success rate. But their response might not be user freindly. The SMSs or bank statement you are getting might not be what a user wants to see. For example, look at the bank statement in your bank app and look at the statement in your co-branded card’s app. The way transaction amount is shown is same but the detail representation changes. They won’t be reading terms and conditions, you have to present them in readable and disable format, so they don’t feel cheated or overwhelemed. Even how do you ask feedback matters.

4. 🤗Service —

Now let’s say you ABC partnered with XYZ bank and becomes a neobank or anyone issuing a co-branded credit/debit card but the transaction failed or maybe they want to report a fraud, who will your customer reach out to. XYZ ? I hope you said No because they won’t. It’s because you onbaorded them in your app, you designed the experince, so you have to fix it. It can be other things like card delivery issue, request pass book and more.

🏛I’ll talk about legal, compliance and other challenges sometime later.

🦄Looking at this, is like what fintech is. Providing solution of finacial problem with technology. It’s complex yet interesting under the hood with endless scope of innovation.