With increasing numbers of companies keen to get involved at the financial sharp end, offering their own branded virtual and physical cards, the area of Bank Identification Number (BIN) Sponsorship is being thrust into the limelight and rightly so. 

However, a successful BIN Sponsorship strategy has to be based on a  close partnership and understanding between provider and user. Get that right and success should follow. Get it wrong and years of effort and time will be wasted. 

On the simplistic level, a BIN Sponsor offers card issuing services to others and does so via their own financial regulatory and card scheme licences. The likes of Mastercard, Visa, Bancontact, Payconiq and China Union Pay have developed sophisticated platforms which encourage increased functionality. 

Over the last few years the full potential of what BIN Sponsorship can offer has become clear. This is no longer just about providing companies with BINS. This is about growing their business with their BIN Sponsor. The focus is on business development and the sponsor is active in creating growth programmes for their customers.  

And those BIN Sponsors that recognise this will benefit from customers that will use a greater involvement in payments process to grow their operations. 

Combating fraud

One of the key elements to all this is how to encourage creativity within the industry, enabling ever-more innovative digital propositions, yet at the same time ensuring trouble-free customer journeys and at the same time combating fraud. This is a difficult path to tread, but one which depends on the integrity of both the provider and the user.

Take the increasing use of biometric technology when it comes to user identity, KYC and KYB. BIN Sponsors work actively with providers that have this technology.  

What we have seen over the last ten years is a widening of elements that BIN Sponsors can support. We started out with prepaid cards, but now the product offering has blossomed to include loyalty services, lending, credit, insurance, debit cards, virtual cards and alternative payment platforms. This is a full suite of functionality which benefits the industry and consumer alike.  

BIN Sponsorship has evolved and developed to such a level, that is now the catalyst, one which provides the account and link to the Scheme. What you have is a bringing together of the core product elements that make up the payments proposition. This includes mobile payments (Apple/Google Pay), wearable payments, bank accounts, domestic and international use payment solutions, card management and onboarding. 

Card scheme

The BIN Sponsor is trusted by the card scheme to run programmes which are operationally efficient, viable, transparent, trustworthy and safe. The onus of accountability is thrust upon the sponsor - they are the gatekeeper and they have to ensure the programme’s integrity to keep intact their own relationship with the card scheme operators. 

The BIN Sponsor sits in the middle between the card scheme which lays down the rules and an ambitious customer which will often want to push the boundaries. The customer has to trust its BIN Sponsor to understand its ambitions, but also on occasions to hold it back, or advise on a different course. This is why the partnership is so important, especially as the pace of innovation is set to increase.

And from those partnerships the fruits will grow. The full potential of what can be achieved between provider and user will then be released. 

Enhanced personalisation

Take enhanced personalisation. Advancements in artificial intelligence and data analytics will allow companies to better understand consumer preferences and behaviour. This will tailor BIN sponsorships to align with individual needs. By leveraging data-driven insights, sponsored collaborations will deliver more relevant and impactful campaigns, leading to increased engagement and customer loyalty.

AR and VR

What’s more, the integration of Augmented Reality (AR) and Virtual Reality (VR) are rapidly gaining traction. These offer immersive and interactive experiences. The future of BIN sponsorship will see collaborations that incorporate these technologies to create innovative marketing campaigns. 

Customers will be able to experience products and services virtually, bridging the gap between online and offline interactions. This technology will transform the way sponsored events, advertisements and promotional activities are conducted, leaving a lasting impression on audiences.

Transcending borders

One further benefit of BIN Sponsorships is that they can transcend borders, leading to more global collaborations. Companies will partner with international brands to tap into new markets, exchange expertise and cater to diverse customer bases. Moreover, cross-industry partnerships will become prevalent, allowing businesses to explore unconventional alliances that will lead to innovative products and services.

Blockchain

Blockchain and smart contracts will also make a significant impact. Within BIN Sponsorships, transparency, security and trust will be boosted. It will enable real-time tracking of performance metrics and ensure fair compensation for all involved. The beneficial result of smart contracts will be the automation of payment processes, the reduction of administrative complexities and the streamlining collaborations.

Environmental and social

As the awareness of environmental and social issues grows, BIN sponsorships are likely to shift towards sustainable and purpose-driven partnerships. Companies will want to seek collaborations with organisations that align with their values, creating a positive impact on society.

This means that BIN sponsorships focused on environmental conservation, social welfare, and community development will be at the forefront of future corporate collaborations.

The focus on biodegradable cards, made from a wide range of recycled materials, is just one example of how the industry and card manufacturers take environmental concerns seriously. 

User-generated content 

A further consideration is influencer and user-generated content (UGC) partnerships. This acknowledges the fact that influencer marketing is growing in popularity. BIN sponsorship will in future involve partnerships with social media influencers and content creators, who can authentically endorse products and services to their engaged audiences. Then there’s the role of user-generated content, meaning customers will be able to actively participate in sponsored campaigns. This will foster a sense of community around the brand.

Financial industry

For all this to happen and deliver its full potential, the creation of stable and trusting partnerships is crucial. BIN Sponsorship is set to continue to change the way much of the financial industry operates and it should be welcomed with open arms, but the depth of the partnership between provider and user is the crux here.

The BIN Sponsor is now in a unique position to help how financial services are delivered to a hungry consumer base.