Revolut, Chime and WeBank are the main digital banking champions in the European, American and Chinese markets, as regulators continue to roll out digital banking licenses for both neobanks and traditional accountancy firms. Competition in digital banking in Southeast Asia remains fierce.
The pandemic turned out to be a boon for the growth of e-wallets, and since then some of the region’s biggest super apps and e-wallets, such as GXBank, Bank Jago, and SeaBank, have made the leap to becoming licensed digital banks and are looking forward to More banks are expected to follow. across the region.
But while e-wallets have flourished in the contactless era, the post-pandemic banking industry’s return to tactile and physical elements and growing consumer demand for more personalization have brought premium and metal products to the fore. It’s being pushed out. neobank, Revolut and their attractive metal plans.
Hyper-personalization is the key
Anthony Ginolin, vice president of payment services, Asia-Pacific growth, at French multinational technology giant IDEMIA Secure Transactions, says this trend has already reached Southeast Asia, with traditional brick-and-mortar institutions and challenger banks are constantly looking for ways to do so. Differentiate yourself from your competitors while meeting the needs of an increasingly discerning customer base.
Ginolin noted the level of competition in more developed banking markets, saying, “In North America, some of the largest fintech issuers are releasing new premium products every six months, and many companies are I find it difficult to do many, faster iterations.”
“Consumer demands for a high degree of personalization go beyond just owning a metal card; they have the potential to choose from multiple designs and options, which is a powerful marketing tool that evokes an emotional response. It’s similar to the release of the long-awaited new iPhone every year. Owning a metal card like this evokes a feel-good factor that you associate with banks.
He said this in a recent interview with Fintech News Singapore.
This observation is consistent with a recent (2024) consumer survey conducted by Dentsu Insights, a renowned research organization. The study, which looked at the latest trends in consumer payment behavior around the world, found that 72% of consumers believe card design is important, and a surprising 81% would customize card artwork. I learned that you value options.
Could the answer to standing out from the crowd be as simple as picking up the Ultimate Metal Art (UMA) cards that IDEMIA released last year and weighing a whopping 22 grams?A physical card for the digital age, Really? Are you targeting not only high-net-worth customers but also the mass affluent group? Gen Z and Millennials say, “Yes, that’s right.”
The same study found that 83% of consumers worldwide are interested in having a metal card, and 57% are willing to pay for one. 67% of respondents cited an elegant look and feel as a reason, and nearly half cited a feeling of difference. This number is even higher for Gen Z and Millennials, with 88% of 18-37 year olds in Asia Pacific expressing interest.
It is certainly driving spending, with metal cards increasingly rising to the ‘top of the wallet’. The high social status and luxury of such cards has led nearly two-thirds of consumers to use metal cards more frequently. 73% of consumers said they would have a more positive perception of their bank if it offered a metal card. The premium look and feel contributes to this perception, with 69% of consumers rating the card’s durability and robustness and 26% being attracted to the card’s weight.
IDEMIA has been issuing metal cards since 2015. Building on the success of the Smart Metal Art card, the world’s first contactless metal payment card fully certified by Visa, Mastercard and Amex, we have introduced other metal cards, including the Smart Prime card. The latest work is the UMA card. The UMA is the heaviest in IDEMIA’s portfolio, making it perhaps the heaviest dual-interface, full-scheme certified metal card on the market. It features a versatile design with a stainless steel and tungsten core wrapped in a protective layer on both sides for maximum durability and longevity. This innovation not only enables unparalleled double-sided contactless transactions on metal cards, but also provides that sensory experience for those who value a premium experience: weight and sound.
Increased income and increased willingness to spend
For issuers wondering whether metal cards are worth the additional manufacturing costs, Ginolin provides numbers that support IDEMIA’s claim that metal cards generate higher returns for issuers.
“Large issuers that offer both physical and digital cards see an average 15-20% increase in spending for the same user base when they migrate users from older PVC cards to metal cards (including digital versions of the cards) I discovered that I did.”
In some cases, the issuers IDEMIA has worked with have shown that consumers are willing to pay to personalize their metal cards and, once they do so, are likely to use that card more often for higher-ticket items. I found it to be expensive.
“Although the cards themselves are more expensive to manufacture than PVC, the cost of customization is minimal. Some of these customizations may be charged to the customer. One of our issuers is They released a metal card with the option to laser engrave the name on the card. It’s a very sexy and nice looking cursive font. They charged $5 for this and 80% of their customers. were willing to pay for this option when signing up for a card. It’s not just a nice-to-have, it’s also a revenue driver for banks because premium services make people spend more. Because when you do that, you use a premium card.”
Ginolin said.
Made of metal but made green
Why bring up sustainability when discussing metal cards? Ginolin says the topic has systematically come up in discussions with issuers considering metal card options. Today’s consumers are becoming increasingly aware of sustainability issues. In fact, the same study revealed that 69% of consumers prefer eco-friendly card options. This raises legitimate concerns. Metal cards may be less sustainable, especially in a digital-first era. IDEMIA, which previously launched Malaysia’s first recycled PVC cards, has also incorporated its sustainability elements into its metal card products.
“Our metal cards are mostly made of stainless steel, which is a fairly sustainable material. We also incorporate a percentage of recycled metals into the core of our metal cards. Recycle or sustain your cards. Everything, including possible metal content, is certified through independent laboratories.
Additionally, our metal cards received validation of our recycled content claims this year from UL Solutions, a global leader in applied safety science providing testing, inspection and certification services. We are committed to providing the highest quality while prioritizing sustainable practices and ensuring our customers do the same when issuing metal cards. Even though metal cards are premium, there is nothing stopping them from being sustainable. ”
Ginoline said.
IDEMIA’s ability to bring about the convergence of the physical and digital worlds also extends to the field of sustainability, as we have developed the Green API. via green pay walletIDEMIA is actively engaged in sustainability and regeneration activities, enabling its customers to actively contribute to earth regeneration projects and track their impact over time.
“Now the card The regeneration action associated with the program allows you to turn a metal card, or any card, into a real active tool for sustainability, empowering users to consistently do good through the use of their cards. Here we go beyond the product itself to help users do more than just offset their emissions or take certain actions. At the end of the day, it’s one thing for the products themselves to be sustainable, but more importantly, we want to create mechanisms and technologies that help banks achieve this. It’s about marrying products with meaningful actions that are environmentally friendly, sustainable and true to the bank’s values, of course.”
Ginolin added.
As the number of players and offers increases in the banking and payments space, we are starting to see clearer segmentation within the high-net-worth customer base (e.g. high-net-worth individuals, mass high-net-worth individuals, high-net-worth individuals, etc.), and issuers are Our aim is to gain customer base ahead of our competitors. do.
Personalized premium products such as metal cards are a very relevant way to attract these segments, especially in a digitalized world where you want to have a physical link with the issuing company at the top. This race looks like it will be a race to avoid latecomers!
