Oregon CU Welcomes 85% Increase in Mobile Use

Posted On: November 05, 2012
Category: November 2012
Read the full article from CU Times below: The $556 million Rivermark Community Credit Union of Beaverton, Ore. announced its online and mobile banking business continues to surge with a 34 % year-to-year usage jump in online accounts and 86% spurt in mobile banking. In August 17 announcement, the suburban Portland credit union with 64, 400 members called the increases a “dramatic shift in how our members conduct their business� which also means they are relying less on branches. Scott Burgess, president/CEO, said Rivermark members seem to be embracing the new technology much more than he expected by opening new accounts online, signing loan documents and depositing checks remotely. [caption id="attachment_430" align="alignleft" width="300"] Rivermark CU in Portland, OR[/caption] Burgess said he is “pleasantly surprised by the overwhelming response� to the credit union’s marketing, noting also “during the same time, the number of in-branch transactions has also declined steadily.� But he stressed that branches are not going out of the picture. "While we're excited about the increased access and convenience we've provided our members, it's important to note that we do not intend to become a branchless credit union,� he concluded. “Branches continue to play a vital role in our strategic direction.� Burgess added Rivermark was the first Oregon credit union to implement mobile deposit in March 2012. In five months, nearly 10,000 members deposited more than 31,000 paper checks using their iPhone or Android mobile device, the credit union reported. Rivermark also launched an e-signature service including smart phone applications. Since that service was launched in February 2012, more than 1,000 loan applications have been signed electronically from mobile and online devices.]]>
read more

New Service Centers Opening!

Posted On: November 05, 2012
Category: November 2012
The more service centers available, the more recognition from members. More recognition from members drives demand, and more service centers will open. It’s a wonderful cycle. Check out who opened new service centers since August, 2012! Liberty First CU 3531 Progressive Rd. Ste 103 Seward, NE Metco CU 115 8th Avenue Southwest, Cedar Rapids, IA New Mexico Educators 630 Paseo Del Pueblo Sur, Taos, NM NuVista FCU 243 N Main St. Gunnison, CO NuVista FCU 2711 Commercial Way, Montrose, CO]]>
read more

Survey: How Many Checks are You Seeing at Your Branch?

Posted On: November 05, 2012
Category: November 2012
We are currently compiling data on check trends at our credit unions. Could you take a moment and fill out our surveys? Look for the results in the next CUSN Connection issue.  ]]>
read more

Checking…Without Checks

Posted On: November 05, 2012
Category: November 2012
Insight Vault blog a few months ago addressing the evolution of banking products. This article raises a significant question to ponder: What is a checking account anymore? What is its primary function? Well, most certainly not for writing checks. The vast majority of checking account transactions are electronic. So what will become of the term “checking account?� Will we simply remove the “checking�? Maybe we will keep the term around for nostalgic purposes. Anyway, CO-OP’s Jon Bartek, Director of National Sales & Relationship Management has written the article below. They don’t call it the Insight vault for nothing. If the future of primary financial institutions doesn’t center around checks, it’s time to recast the primary account with bill pay as a personal money hub. It’s probably been a while since you last thought about electronic bill pay. And when was the last time you thought of it as the future of primary financial institutions (PFI)? Chances are pretty good you’ve never thought of bill pay that way. But as checking account transactions become increasingly electronic – and new features like CO-OP Bill Pay’s person-to-person (P2P) payment solution make e-transactions easier and more universal – checks are becoming less relevant. If money is less about paper and more about data, then the primary account acts more like an electronic hub – a center into which deposits flow in and out of which payments are made. Less than one in four bills –23 percent – are now paid by check, according to Fiserv’s 2011 Consumer Billing and Payment Trends report. By contrast, an even 50 percent are paid electronically, either through online bill pay or biller-direct payments. And that trend is only going to gain speed. Not only are consumers comfortable paying their regular bills online, but they’re now looking to do individual transactions (transferring money to kids’ accounts, making payments to online vendors via PayPal) without the “benefit� of paper checks. So, to paraphrase Brett King at THINK 12, why are we still referring to primary accounts as “checking?� Even more important, as consumers make this inevitable transition, how are credit unions shaping future ideas about PFI? The fact is, this transition is well underway: We don’t need to kick start it. What we do need is a new way for credit unions to design and position primary accounts – one that reflects the way consumers are actually using them. Members Need Bill Pay If your credit union is like most, you probably already offer some form of electronic bill pay. And – if you’re like most – you probably don’t pay it a great deal of thought or attention. But a robust bill pay solution offers your members significant benefits, even over paying bills online directly to individual vendors. Users of CO-OP Bill Pay’s premium service get:
  • Centralized log in. Instead of 4,327 user names and passwords, they have one. They check a single account to follow up on payments and transactions.
  • Alerts. Members receive email notices when payments are due – or when anything significant is happening with their accounts – all from their primary account.
  • e-Bills. Members view and pay electronic versions of their bills from a single “location.â€?
  • Expedited payments. Electronic payments can be made on the same day.
  • P2P payments. Members can transfer money to anyone with a deposit account in the United States – or send money instantly via PayPal without having to use their own PayPal accounts.
  • Mobile bill pay. This feature of CO-OP Bill Pay’s premium service is an ideal complement to mobile banking service.
What’s in it for You? Right now, mobile and P2P are the topics that make bill pay newsworthy. And, in fact, they might be the perfect opening to get members interested in bill pay again. But there are separate – and equally compelling reasons – for credit unions to get members signed on to bill pay. What’s in it for you? According to Fiserv: Members who pay bills online use more services from their financial institutions. Bill pay is sticky: Some 49 percent of consumers say they’re less likely to change institutions because they use bill pay. Here’s another way of viewing it. Members who use their credit union’s bill pay to manage their financial lives are using their accounts more like a “hub,� with their credit unions accounts at the center of all activity. While that difference may be subtle, it might also be significant as we move toward the digital future. Everywhere, your members are offered the opportunity to make their financial lives more diffuse. Is the electric bill due? Go to their website to make a payment. Want to buy something on www.etsy.com? Be ready to fire up your PayPal account. Would your members like to pay for things using their cellphones? Probably yes. Offering your members a bill pay product that is up-to-the-minute with features – and then encouraging them to use it – helps keep them on the PFI track, with their credit union “hub� account squarely at the center of their financial lives, where it should be.]]>
read more

CUSN and CO-OP Expand Partnership, Now Offer EFT and Bill Pay Products

Posted On: November 05, 2012
Category: November 2012
CO-OP, which opens up a wide spectrum of products for you and your members! Below is the press release that covers the basics. CUSN and CO-OP Financial Services Expand Partnership CUSN to Extend Access and Convenience products and services LAKEWOOD, Colo. (August 31, 2012) – CU Service Network (CUSN) has expanded its long-standing relationship with CO-OP Financial Services to cater to changing demands in the industry. CUSN will now offer CO-OP Network, CO-OP ATM Terminal Driving, CO-OP In-House Credit, CO-OP Debit and CO-OP Bill Pay. CUSN will continue to offer CO-OP Shared Branching, CO-OP Mobile, CO-OP My Deposit and CO-OP Member Center. “In today’s marketplace, it is more important than ever for credit unions to make it convenient for their members to access accounts,� said Doug Burke, President/CEO of CUSN. “By expanding our partnership with CO-OP, we can continue to offer our clients desirable products and services in a cost-effective, profitable and cooperative manner, and help them flourish now and in the future.� Benefits of the expansion include additional operational services now provided to credit union clients. For example, all of credit unions’ electronic funds transfer processing needs can be performed by one full service provider. “CUSN has vast experience with our Next Generation Network-based offerings, led by CO-OP Shared Branching,� said Stan Hollen, President/CEO of CO-OP. “Now CUSN will offer our EFT products based on the same knowledge of the needs of local credit unions and outstanding service.� CUSN’s market area includes Colorado, Idaho, Iowa, Nebraska, New Mexico and Wyoming. In addition, it works with several credit unions in Arizona, Texas and Oregon and will expand its market to include Kansas and Utah for these new products.]]>
read more

We are also Offering Additional Incentives!

Posted On: November 07, 2012
Category: November 2012
We are now offering some great incentives for other CO-OP products as well, but only for a limited time. Now offering incentives for: - Mobile Banking - Mobile Deposit - My Deposit Contact Daniel Burk at (720) 945-7235 / djuburk@cusn.com or Dale Pierce at (720) 945-7246 / dpierce@cusn.com for more info.]]>
read more

Through November 30th Only: Special Bill Pay Offer!

Posted On: November 07, 2012
Category: November 2012
CO-OP FS are offering a killer deal on Bill Pay through the end of the month. Our bill pay is one of the best products on the market, rivaling the technology of the biggest banks out there. If you are considering adding Bill Pay to your 2013 product line, you will want to take a peek at this offer.   ]]>
read more

Credit Union Shout Out: New Products and Services

Posted On: November 07, 2012
Category: November 2012
The leaves are falling (or have already all fallen off your trees, depending whether your city is located in a wind tunnel, like ours). Or maybe you don’t have any trees. Regardless, we are in the depths of Autumn and our CU’s are making big changes to their service line. Take a look at who’s doing what this quarter. Mobile Banking Malheur FCU, Ontario, OR Columbine FCU, Centennial, CO Aurora FCU, Aurora, CO My Deposit Malheur FCU, Ontario, OR Sandia Laboratory - MRDC Service Center Moves State Employees CU of NM – Belen, NM State Employees CU of NM – Santa Fe, NM Bellco CU – Downtown Denver, CO White Crown FCU – Main Branch, Denver, CO BCS Community CU, Wheat Ridge, CO]]>
read more

CUSN Connection Series Cutting-Edge

Posted On: November 07, 2012
Category: November 2012
th, 2012, in Golden, CO and were delighted to have John MacAllister of Dorado Industries speak. We just hosted our Fall CUSN Connection Series on October 26th, 2012, in Golden, CO and were delighted to have John MacAllister of Dorado Industries speak. We knew from the start that Mr. MacAllister would not fail at presenting a timely and relevant seminar on changes to the payments industry, but some attendees, (including us) were quite frankly in awe of how timely his data really was. Many of his figures were as close as “to the minute� as you could get, and much of the data hasn’t been formally published yet. Our one complaint received was that it simply wasn’t long enough! Mr. MacAllister easily packed a full day’s worth of data and studies into an hour and a half session. He was about as relaxed as you could get, but don’t think for a second that his presentation was. If you blinked an eye, you missed a figure. But we credit union people know that time is of the essence, and we don’t mess around. Below is a recap on just some of the info John MacAllister provided us at the seminar, “Pending Changes to the Payments Industry�: -Google, PayPal, Apple (more precisely, Android, NFC, and iOS), all unregulated players, are likely to the primary drivers behind mobile payments – each has the ability to derail traditional payments [caption id="attachment_493" align="alignright" width="300"] John MacAllister of Dorado Industries and Doug Burke, CEO of CUSN[/caption] -The once-benign ACH system, formerly relegated to the back office, provides routing around established debit and credit systems and delivers transactions to us for a fee -Generated prepaid reloadable cards threaten to break the traditional deposit account-FI linkage (while having other up-sides) -Explore options to create a CU-centric P2P option using the NGN or FIS shared branching engines. Augment with PayPal or Western Union for access to non-CU accounts -Issuer-acquirer symmetry is essential for any payments system to work. So, any plans for new issuer initiatives must consider acquirer behavior -Recent issuer surveys foreshadow movement toward re-emphasis of credit over debit to protect against Durbin and to build assets -Yet, if debit networks cave into retailer pressure to reduce the “average interchange rate� to say, 32¢, pressure on earnings may occur -P2P payments, when operating in a networked environment, offer lower costs and breed loyalty Stay tuned for our next Connection Series, where we hope to continue a growing tradition of providing information that is to-the-point and critical to credit union decision makers today.]]>
read more

Download Our Whitepaper: Maximizing the Shared Branching Investment

Posted On: November 15, 2012
Category: November 2012
Topic: Maximizing the Shared Branching Investment: How Credit Unions are Generating a Positive Impact on the Bottom Line by Creating a Culture of Convenience Author: CO-OP Financial Services Executive Overview Proactive credit union executives view shared branching as an avenue to further expand member relationships. Shared branching helps by providing the convenience that is demanded to achieve primary financial institution status and create new income opportunities by accepting guest member transactions. Additionally, shared branching promotes the cooperative nature of the national credit union movement, a business philosophy unmatched in almost any business sector. With more than 7,100 locations nationwide, members can access the shared branching network through shared credit union branch offices or systematically placed kiosks. Credit unions remain competitive by participating in shared branching as an issuer, a platform which allows their members to go to a branch or kiosk to complete a transaction. Forthcoming data and statistics gathered from a study done in conjunction with Callahan & Associates prove that there are clear benefits to being a shared branching issuer; however, participating as an acquirer as well, in which case a credit union accepts guest members into its facilities to complete transactions, brings additional opportunities for enhancing financial performance and member relationships. To be clear, all credit unions must participate as an issuer, but can choose to have one, some or all of their branches act as acquirers. Credit unions should take the necessary steps to determine what the appropriate level of participation is for their individual circumstances regarding shared branching. This white paper will inform credit unions on the issues related to shared branching as well as provide guidance for maximizing the investment potential in shared branching. National Credit Union Movement Since Bank Transfer Day on Nov. 5, 2011, CUNA reported that approximately 1.9 million consumers have made the switch from banks to credit unions. This is good news for the industry but places pressure on c-level executives to ensure that existing members’ needs are met as well as having the architecture in place to support the expectations of migrating banking customers, who many times require or expect a large branch network. According to the April 2012 Callahan & Associates paper, The Cooperative Solution to Convenience: A Report of Shared Branching, when properly executed, issuer/acquirer shared branching enhances a credit union’s value proposition. The report centered on three key peer group segments: credit unions in excess of $35 million in assets that do not participate in shared branching, shared branching credit unions that are both issuers and acquirers, and shared branching credit unions that are only issuers. While the report determined that not one single metric can inform a credit union as to when or how to adopt; balance sheet growth rates usually play a defining role in the decision process as a positive balance sheet indicates a credit union is serving current members and attracting new members with competitive products. “Credit unions that do shared branching, particularly those that participate as acquirers, may see higher than average growth in their balance sheet due to their members utilizing the credit union more often,� the report stated. Critical balance sheet growth metrics include loan growth followed by share growth and asset growth. To this end, issuer/acquirer 12-month loan growth was 275 percent higher than issuer only; and 12-month share growth was 34 percent higher at issuer/acquirers compared to issuer only. Finally, asset growth was 29.2 percent higher at issuer/acquirer compared to issuer only. These statistical trends can be attributed, in part, to the fact that members become more versed with shared branching when their home credit union is an acquirer. Acquiring credit unions tend to promote the service more, which helps the credit union better educate its own members. This, in turn, can translate into better financial performance when compared to issuing only institutions. The Case for Issuer/AcquirerVersus Issuer Only Along with balance sheet growth, c-level executives must determine income and expenses related to shared branching. Variations between individual peer groups based on the credit union’s business model and services need to be assessed. Additionally, member relationships as related to the credit union’s value proposition need to be determined. According to the report, “Many income and expense metrics are affected by shared branching, including non-interest income, employee expenses and marketing expenses. While shared branching credit unions may have higher expenses and lower returns, these credit unions are investing in their members by providing them with the convenience to conduct transactions almost anywhere, which will lead to balance sheet growth and eventually revenue growth.� Non-interest income (i.e., fee income and other operating income) is an increasingly important source of revenue for credit unions. This is due, in part, to recent declines in loan interest income. The Callahan & Associates report found that fee income decreased approximately 10 basis points over the past five years for each peer group. Industry wide, fee income has declined during the course of the Great Recession, while other operating income has realized increases. “Issuers and acquirers had the highest ratio (of fee income) at 84 basis points, down from 95 basis points in 2006. Other operating income, which includes interchange income, has made up for the fee income decline,� the report stated. “The issuers and acquirers had the highest ratio at 59 basis points, beating credit unions without shared branching by 1 basis point. When looking at non-interest income as a whole, issuers and acquirers were highest at 1.43 percent of average assets, 17 basis points higher than credit unions that do not participate in shared branching.� It’s important to note that while the ratio for issuers and acquirers realized a dip, compared to the peer group, it yielded the highest ratio. Issuer and acquirer Hanscom Federal Credit Union’s Scott Post, Senior Vice President of Strategy and Delivery, cited the following feedback in the Callahan & Associates report. “From a financial perspective, people who use shared branching services tend to have larger balances with us. From a philosophical standpoint, we consider ourselves committed to our members’ convenience. You can’t be convenient unless you have a lot of endpoints; however the member wants to use you. So if we can deliver our service at a place that is convenient for the member in a way the member wants to access, that is how we know we are being successful.� In 2010, Hanscom Federal Credit Union’s shares and certificates grew by 12 percent, while assets grew 11 percent year-over-year. The credit union realized a 26 percent increase in new members over the prior year. “Part of that comes from our constant communication that we have all these convenient ways for you to do business with us,� said Post. A credit union’s efficiency ratio, which is measured by dividing operating expenses by total income minus interest expense, is a critical metric to decipher as well. “A lower efficiency ratio is desirable, as it means a lower percentage of income is going towards operating expenses,� noted Callahan & Associates.“Issuing credit unions had the highest efficiency ratio, 70 percent, with issuers and acquirers coming at 69.8 percent.� Although a slim difference, the potential value proposition of becoming an issuer/acquirer is considered advantageous. On average, shared branching issuer-only credit unions generally have higher expenses and lower returns than issuer/acquirers because acquirers have the ability to offset issuer costs and generate revenue by completing transactions for guest members. Additionally, Callahan & Associates found that credit unions that participate as both issuers and acquirers had a return on assets (ROA) of 68 basis points, compared to 53 basis points for issuer only credit unions. Shared branching issuer/acquirer credit union members tend to use their credit union for additional services such as checking accounts and loans due to the increased convenience, which fortifies the bottom line. Key findings in this category include capital growth, which was 27 percent higher at issuer/acquirer credit unions compared to issuer only. Loans/shares ratio is 6.9 percent higher at issuer/acquirer compared to issuer only and combined new/used auto loans are 20.76 percent higher at issuer/acquirer compared to issuer only. Hanscom Federal Credit Union’s Post was among a plethora of credit union issuer/acquirers who participated in the Callahan & Associates report, all of whom found net gains with an effective strategy. “Credit union executives interviewed for this report indicated that members who use shared branching have a larger portion of their wallet with the credit union. This may lead to asset growth, share growth and possibly even loan growth,� the report stated. “The ability to cross-sell products could prove crucial in getting members who are using shared branching to also get a loan or other additional products with the credit union.� The CO-OP Financial Services Shared Branching Value Proposition Shared branching participants have opportunities to expand relationships with members through their own channels (i.e., credit cards and loans) because the convenience the service offers prompts members to use the credit union for multiple needs. As an acquirer, credit unions have additional opportunities to generate income by performing transactions for issuers. Additionally, the return on investment (ROI) for shared branching is quickly realized both financially and through service offerings. For example, non-interest income per member is 18 percent higher at issuer/acquirer credit unions compared to issuer only credit unions, and 12-month member growth is 700 percent higher at issuer/acquirer compared to issuer only credit unions. Other growth statistics found through the Callahan & Associates study are important as well. Average loan balances for issuers/acquirers are $288 higher per member than issuer only. Share draft penetration is 7.5 percent higher at issuer/acquirers compared to issuer only, and auto loan penetration is 17.1 percent higher at issuer/acquirers compared to issuer only. If a credit union determines it is ready to make the migration to the shared branching platform, CO-OP Financial Services can guide credit unions on how best to participate. To this end, CO-OP can assist in the all-important decision to be an issuer/acquirer or issuer only as both approaches can be implemented seamlessly. Historically, the way in which credit unions have achieved successful growth rates is by cultivating and nurturing member relationships. While members have a plethora of banking options, they select credit unions for the personal touch and the value offered through better rates and lower fees. In addition, members, and more importantly potential members, place a high value on convenience. To this end, a credit union can expand convenience, enhance service offerings and deepen member relationships by joining CO-OP Shared Branching. Download the PDF here]]>
read more

You will be directed outside the cusn.com website.
Would you like to continue?