Today’s market is becoming more cut-throat, as brands are fighting tooth and nail to hold on to customers. In this struggle of customer attainment and retention Co-branded credit cards are emerging as a powerful tool. They help brands engage with customers at different touchpoints, enhance brand credibility and extend brand presence.

However, launching a co-branded credit card is no simple feat. There are two ways to launch a co-branded credit card. One is through the Internal team, and another is through the Credit Card as a Service (CCaaS) solution.  The traditional method requires strategic planning, partnerships, complex compliance processes, technology installation and prudent marketing efforts. The process is fraught with challenges and requires a lot of time. It sometimes leads to poor customer experience and diminished loyalty.

The increased popularity of CCaaS platforms-

Over the years CCaaS platforms have become increasingly desirable among brands. They provide a comprehensive cloud-native platform, to launch and support the entire lifecycle of credit card management. This unified infrastructure contains-

• Integration with major payment networks
• Seamless transaction processing
• Framework to adhere to the compliance requirements
• Flexible API configurations, to enable real-time data processing, fraud detection, and customer relationship management.

There are two different approaches to partnering with CCaaS players

1. Synergizing with the Bank’s CCaaS Partner
2. Direct partnership with CCaaS players.

In a survey by Redseer, 60% of respondents selected bank partner integration as the top benefit of partnering with a CCaaS platform. 52% thought access to advanced technology was a major benefit, and 50% chose improved customer experience and engagement as a major benefit of the CCaaS platform.

Improving customer loyalty CCaaS platforms-

CCaaS players create two essential layers that streamline both the issuance and post-launch management of payment cards.

Issuance layer (The core foundation)-

The issuance layer serves as the core foundation of the CCaaS platforms. It supports the following functions-

Onboarding- Involves onboarding of new customers and other formalities such as KYC checks and assessing credit scores etc.

Integration- Facilitating a unified operational workflow by integrating with banking systems and payment networks.

Card management- Real-time balance and transaction tracking providing cardholders with timely and detailed statement generations.

Regulatory compliance- Detecting any suspicious activity and compliance with AMI regulations.

Post-issuance engagement-

This is the follow-up level, to fill the gap left in the issuance layer. It is essential for maintaining and strengthening personalization and post-issuance enhanced communication, to keep customers engaged with perks and rewards throughout their journey.

The Journey Tomorrow-

As Co-branded Credit Cards continue to grow, consumer brands are increasingly looking to jump on the rollercoaster by leveraging the power of CCaaS platforms. However, the tough task is to collaborate with the right partners to enhance the launching and management of these platforms. While doing so there are certain checklists that need to be ticked – Strategic Alignment, Technical expertise, Marketing Window and cost models. These will help with efficient implementation and address operational complexities.