ROI_Projection_Instant CardIssuance.pptx

ROI_Projection_Instant_Issuance

1. ROI Projection: Instant Issuance vs Centralized Issuance Bank Case Study – 4M EMV Cards, 1,027 Branches

2. Current Cost Structure (Centralized Model) Annual volume: 4M EMV cards across 1,027 branches Cost per card = $6.35 Personalization: $2.00 Fulfilment: $2.00 PIN mailer: $1.50 Delivery: $0.85 Total Annual Cost = $25.4M

3. Proposed Instant Issuance Model Cost per card = $2.54 Personalization: $2.00 Thermal ribbon: $0.48 Delivery: $0.06 Fulfilment & PIN mailer: eliminated Total Annual Cost = $10.16M

4. Direct Savings Impact Annual savings: $15.24M (60% Opex reduction) Fulfilment eliminated: 100% ($8M/yr) PIN mailers eliminated: 100% ($6M/yr) Delivery cost reduced: 93% ($3.4M → $0.24M)

5. Investment Requirement (CapEx) Hardware (1,027 branches): $59.98M Software & Integration: $3.20M Implementation & Training: $15.41M Total CapEx = $78.58M Recurring: $6.16M annual maintenance

6. ROI Snapshot Net annual savings after maintenance: $9.08M Payback period: ~8.7 years (faster with card growth) 10-year ROI (flat 4M volume): ~16% Potential with 5–8% card growth: >40% ROI

7. Indirect / Strategic Benefits Customer Activation: 92–98% vs 60–70% by mail (Visa/Mastercard) Higher Card Spend: +15–20% in first 30 days (ACI/Aite) Faster Acquisition: reduces account drop-off by 15–20% Fraud Reduction: 5–7% lower due to no mail theft (Gemalto) Operational Efficiency: saves 10–15% staff time Sustainability: less paper, printing, courier miles

8. Key Takeaway $15.24M annual direct savings (60% Opex cut) Payback ~8.7 years, reduced with card growth Indirect upside: higher activation, spend, loyalty, fraud reduction Instant issuance = lower cost + stronger customer experience