Card Launching 101 Ep. 2: Choosing the right partners — legal and technical requirements
- Launching a card has become a core part of banks' and fintechs' product strategy.
- In Tearsheet's new Card Launching 101 guide, we speak to some of the best in the industry about what it takes to launch a successful program.
Launching a card is such a core part of today’s financial services. Whether you’re an incumbent or a fintech, a card is likely a cornerstone product in your portfolio and an important contributor to your revenue.
As the space has matured, firms have gotten better at partnering. That’s good, because you’ll need partners to launch a card. As fintech has grown, it’s helped financial services mature overall – the art and science of partnering is definitely improving with time and experience. That’s also good – because choosing the right partners and figuring out how to best leverage both parties’ unique skills and talents is really a big part of the secret sauce here.
I’m Tearsheet’s Zack Miller. We wanted to shine some major light on the card launching process making it easier, smoother, and hopefully more successful. This series is sponsored by Galileo. And participation in this series - we have some great executives and companies involved – doesn’t mean an endorsement of Tearsheet or our sponsor.
And to do that, we enlisted some of the best fintech and financial services firms out there to talk about what they’ve learned launching and scaling card products. We turned to some of the top brands – like Wise and Dave – with millions of cards in their users’ hands. We also turned to the platforms and banks – firms like Cross River Bank and First National Bank of Omaha. And we talked to Galileo – the technology and processing platform powering many of today’s most popular fintechs.
Download the guide
This is the second of a three part series (Episode 1, Episode 3) where we focus on the importance of finding the right partners for your card program. To dive even deeper, I encourage you to download the guide we published incorporating all this inside information and more. To download your free guide, go wwwtearsheet.co/cardguide
What you'll learn
In Episode 2 of the series. we address the following:
- The Importance of Partners: Launching a card program in the financial services industry requires strong partnerships, and the choice of partners significantly impacts the success of the program. Finding the right partners is crucial for long-term success. (Entry II)
- Planning for the Future: It's essential to think beyond the immediate goals and consider what products or services your card program might offer in the future. Choosing partners that can adapt to your evolving needs is essential for efficiency and cost-effectiveness. (Anthony Peculic, Cross River)
- Experience Matters: Partner with organizations that have experience and are willing to understand your specific use case upfront. This helps avoid surprises and ensures that your partners can meet technical and compliance requirements. (Anthony Peculic, Cross River)
- Selecting the Right Partner: The choice of partners is a long-term commitment, similar to a marriage, with contracts spanning three to five years. Cultural fit, product breadth, and cost should be considered when vetting potential partners. (Zack Miller)
- Speed to Market: Partnering with organizations that have experience can accelerate your program's speed to market, thanks to their existing integrations and relationships in the industry. (Suzan Chafin, Galileo)
- Integration with Existing Banks: Working with vendors like Galileo, who have existing bank partnerships, can lead to faster program launches. They already have processes in place, reducing the time required for integration. (Suzan Chafin, Galileo)
- Technical Requirements: Clear technical requirements are essential for launching a card program. It's crucial to decide how much control you want over the customer experience and whether you'll build it in-house or outsource. (Marc Butterfield, FNBO)
- Balancing Outsourcing: While partners can handle many aspects, firms that value close relationships with customers must balance working with partners versus doing some things in-house to control costs and customer experience. (Sharon Kean, Wise)
- Collaborative Selection Process: When choosing partners, it's crucial to collaborate and ensure alignment between your goals and their capabilities. The partner selection process involves a deep understanding of each other's needs and resources. (Suzan Chafin, Galileo)
- Education and Support: Vendors like Galileo take a collaborative approach by educating and supporting their clients, especially those who may be new to the industry. This approach ensures that clients have a clear understanding of the necessary steps and components for success. (Suzan Chafin, Galileo)
Our discussion highlights the significance of partnership choices, long-term planning, and the technical and strategic aspects of launching a card program.