An E-publication from the Delaware League Services

Third Quarter 2006

 

Look No Further…We’ve Got It Now!
Remote Branch Capture and Deposit

Is your credit union searching for a Remote Branch Capture and Deposit solution? Search no further, because Mid-Atlantic Corporate has a solution for your credit union and we have it now!

What Can Remote Branch Capture (RBC) Offer My Credit Union?

Our Remote Branch Capture and Deposit product offers a cost-effective and efficient way to capture check images and send those images electronically to complete the entire settlement process as envisioned by Check 21.  The RBC product solution provides an efficient means of imaging, archiving and electronic check presentment, which streamlines back office procedures and eliminates the need to microfilm or copy items. Credit unions will also benefit from faster availability of funds and expanded branch cut-off times.

Mid-Atlantic Corporate offers two solutions for Remote Branch Capture. Web based or in-house products are available to meet your individual credit union’s needs. With either RBC solution, Mid-Atlantic Corporate will provide forward collections of captured images not drawn on the credit union. These items are sorted and forwarded on behalf of the credit union utilizing our least cost routing technology.

How Does RBC Works?

Instead of encoding deposited checks or taking them to a third party encoder, you can capture an image of your member’s deposited items right at the teller window or on the back counter. With a remote branch capture product, a credit union will scan their transit items to create a Check 21 compliant image file for processing.

Images are then forwarded to Mid-Atlantic Corporate through a secured Internet connection either in batches or individually as scanned (this is determined by the RBC option chosen by the credit union). This can be done multiple times throughout the business day.

Mid-Atlantic Corporate will handle the forward collection process of these imaged items. All work received by Mid-Atlantic’s established cutoff time will be credited to the credit union’s account the next business morning. Funds will be 100% available at that time. Our current cut off time is 6:00 p.m.

The credit union will truncate the original paper items for a period of their choosing. Mid-Atlantic Corporate recommends that length of time be no less than 120 days, however, there is no regulatory minimum truncation period.

Any returned deposit items will route back to Mid-Atlantic Corporate, since the Corporate is the Bank of First Deposit (BOFD). The credit union will be notified of their returns on the same business day that Mid-Atlantic receives them.

Benefits of RBC

·         Availability – Expanded cut-off times mean that deposits received by Mid-Atlantic Corporate’s established cut-off time will be 100% next day availability.

·         Return Times – Quicker return times as a result of electronic presentments will increase the benefits of check holds, limiting potential losses for the credit union.

·         Efficiency - An RBC solution increases credit union deposit efficiency. Paperless deposits speed the transfer of funds to your Corporate account.

·         Cost Savings – Eliminate or reduce courier runs and the cost associated with these services.

Two RBC Service Options Available

We found that the best way to meet your credit union’s needs was to partner with two technology companies for the software required for RBC. Bluepoint Solutions provides an in-branch batch solution that requires software and a scanner to be installed at your credit union. Several different brands and speeds of scanner are available. Using this option a credit union will create a batch file of imaged deposit items, which is automatically routed to Mid-Atlantic for forward collection processing.

The second option is a web-based solution offered through Goldleaf Technologies. With this option, an approved scanner and high-speed Internet access is all that is needed to create an RBC workstation. This option is also affordable enough and ideally suited to be expanded to include your business members.

For more information on either RBC solution or pricing for these programs, please contact your Corporate Account Manager.

 

Laughter Can Be a Cure For Workplace Ills

Author: Michael Dougal, Principal Consultant, HRValue Group

On a national level, employee satisfaction, worker productivity and customer service continue to be priority items for managers, supervisors and human resource professionals. The challenge for credit unions is to achieve high levels of productivity and member service, while maintaining a satisfied, motivated workforce. Not an easy task, but not impossible either.

Furthermore, these objectives are not mutually exclusive. And the solution does not have to drain the bottom line.

Certainly, a fair salary and competitive benefits contribute to worker satisfaction, but other parts of the solution cost little or nothing, and having fun at work is no exception.

A survey published by Training and Development magazine revealed that 84% of HR managers said employees with a sense of humor do better work and 97% of executives agree that humor is valuable in business.  Additionally, studies have proven that humor greatly reduces stress.  So why don’t more companies encourage humor at work?  I simply don’t know and I get stressed out thinking about it (that was a joke).

Statistics aside, I feel that most employees would prefer to work at a place where humor is appreciated and encouraged.  I know I do.

And besides, the benefits are virtually endless!  Companies that have taken a proactive approach to having fun at work have found that it facilitates communication, improves productivity, builds relationships, energizes employees and encourages creativity.  Now, if you do not want energized, creative, productive employees, stop reading.

But if you want these benefits for your work environment well read on, because the fun starts here!

Let’s first dispel some myths.

• Work is no place for fun.  Considering that most adults spend the bulk of their waking hours at work, why shouldn’t work be fun?  Reduced absenteeism and tardiness have been some positive side effects of encouraging fun at work.

• Having fun is a waste of valuable time.  Simply false.  Studies show that having fun at work results in increased productivity and more creativity.  Sounds like more loans to me. 

• Laughter equals goofing off.  Not so.  A good laugh counteracts boredom, reduces personal conflict and releases tension.

• Workplace fun will lead to harassment or other bad things.  Only true if not kept in check.  As with other initiatives, introducing fun at work must be endorsed, guided and monitored by management.

• Our members will not understand.  Well, I have been witness to a few Annual Conventions and credit union conferences in my time, and in my professional opinion, your members like to have fun.

Although I do not recommend that you transform your lobby into a full-time Macarena dance floor, there are many ways that you can infuse the workplace with fun and not sacrifice productivity and member service.

The key is being serious about work, but not taking yourself so seriously.  If you had to re-read that sentence two or three times, you are too serious and I recommend that you start having fun immediately.

So how do you initiate a fun-at-work environment?  For ideas and more information on fun in the workplace, please use the link Laughter Can Be A Cure For Workplace Ills to see the article in it's entirety.

As a strategic partner for the credit union industry, HRValue Group provides several resources that can ensure your organization is competitive in the market.  For more information on these services and other human resource solutions, contact us at 888-272-4598 or info@hrvaluegroup.com.

 

 

REVERSE MORTGAGES– A GREAT SERVICE FOR YOUR SENIOR MEMBERS

A reverse mortgage is a loan that allows seniors to use the equity they have accumulated in their homes to improve their quality of life and continue to enjoy their independent living.  By converting equity into cash with a reverse mortgage, homeowners retain title, and remain living in their own home for as long as they want. 

AIG Bank, a member of the National Reverse Mortgage Lenders Association (NRMLA), specializes in reverse mortgages.  AIG Bank was chartered in 2000.  The reverse mortgage division was started in 2004 and currently offers reverse mortgages in 23 states.  All loan processing is completed in Delaware. 

Credit unions can serve the needs of their senior members by offering products tailored to their generation.  A reverse mortgage is an excellent example of such a product.  Credit unions may opt to refer their members directly to AIG Bank or enter into their HECM Advisor program and receive compensation.  Either way, your credit union is helping senior members obtain the cash to live comfortably and enjoyably in their retirement years.  Isn’t that what we all dream about?

Don Jeffries is our Reverse Mortgage Specialist for AIG Bank.  He would like to meet with you to discuss offering this unique and niche service to your members.   Please welcome him when he calls on you.

For more information, contact Jane Bailey, 800.292.7875 or jane@dcul.org.

 

 

 

New Security Programs Offered Through The League and CUNA Strategic Services

The Delaware League will begin marketing three new security and disaster recovery programs through a strategic alliance with CUNA Strategic Services. 

Agility Recovery Solutions – This company provides temporary equipment and furniture replacement for credit unions that experience a major catastrophe or something minor like a power outage or theft.  Agility’s promise is simple but profound.  Within 48 hours, they will deliver everything a credit union needs to keep running and connected to members.  Their modular workstation is fully equipped with power, satellite communications, Internet access, computer equipment and traditional branch amenities such as teller counter, lobby area, and check counter.  Additionally, the mobile unit may house desks, chairs and additional technology to maintain critical credit union office functions.

Perimeter Internetworking Corporation –  Perimeter Internetworking is the leading provider of managed networking and information security services for financial institutions. Perimeter's unique centralized architecture offers best-in-class pre-integrated technology with complete redundancy, continuous upgrades, complemented with a 24/7 engineering staff of trained subject-matter experts. Perimeter offers the most complete service suite available in the market today with over 60 managed solutions organized into six groups: Intrusion Defense, Malicious Code Defense, Secure Mail Services, Secure Access, Secure Network Services, and Automated Compliance.

TraceSecurity, Inc. –  TraceSecurity provides these three main programs for credit unions:

• Security Vulnerability Assessment:  TraceSecurity performs a comprehensive examination of credit union networks to determine the adequacy of existing security measures and identifies security deficiencies.     

• Penetration Testing:  Trace Security will evaluate a credit union’s defenses before a hacker does.  Their security engineers mimic the actions of real life hackers and exploit weaknesses in security systems without the usual dangers involves.

• Social Engineering – In this test, Trace Security attempts to acquire sensitive information or materials from credit unions through the manipulation and deception of people or circumstances.  Their engineers have numerous ways to gain unauthorized access and obtain critical classified information, equipment and software.

Look for more information on these services in the coming weeks.

 

 

 

 

 

 

DON’T BE CAUGHT OFF GUARD – The Debit War is Heating Up!!

By Corrine Sherman,  Vice President, Card Services, Pennsylvania Credit Union Association

Are debit card promotions becoming as aggressive as their credit card counterparts?  That is the prediction being made by industry experts.  Going after the debit market means going after the deposit market, which can be a more relationship-based product than credit and the larger financial institutions want that relationship.  According to experts, advertising budgets for debit cards have skyrocketed in preparation for the “attack”!

While there have been some issuers that have “tested the waters” with debit rewards, the expectation is to see debit card offers become more like credit card offers, full of rewards and perks.  Financial institutions are becoming more comfortable with the debit interchange structure and really understand the economics of a debit card offering.  Not only does it provide for the “relationship-based product” so desperately sought after, but it also provides for a significant source of non-interest income.  Not to mention, with consumers being motivated to look for value added products, the perks attached to a debit card are sure to attract their attention.

Some credit unions may have some concern about the debit market reaching saturation?  Not even close!  While the percent of consumers carrying a debit card continues to rise, even more important is the percent of consumers who are using a debit card is also on the rise.  Just last year Visa announced that debit card use has topped credit card use on the web; in addition, Visa’s overall e-commerce volume grew by 33%.  Transaction volume continues to shift from cash, checks and even from credit to debit.  And, we continue to see emerging markets, such as utility and other monthly bills and fast food restaurants.

In a recent study provided by Pulse, only 57 percent of debit cards in a consumer’s wallet can be considered “active,” (“active card” is defined as one that is used at least once per month to make a signature debit purchase).  On average, the active cardholder performs 15.6 debit point-of-sale (POS) transactions per month:  10.6 signature and 5.0 PIN authorized.  When all cardholders are included in this sample, the average drops to 8.7 transactions per month.

There is room for growth in every debit card portfolio!  There is room to increase accounts and room to increase transaction volume.

How does your credit union “sell” new share draft accounts?  Why would a member choose to open a new share draft account with your credit union?  Is there something that attracts members to that product?  If not, it’s time to find something!  Here is a sample of what is currently being offered;  Reward points, one point for every $1 spent.  Automated savings programs linked to debit card usage.  Even GM has a debit card with rewards redeemable towards GM products.  Reward programs don’t need to be complicated, they simply need to be rewarding (in a way that is important to your members).

It’s important for credit unions to monitor and understand how the current debit product is being used.  Do you understand who is using the card, how are they using the card and how often they are using it?  Break the accounts down into the following categories; 1) No debit use 2) Low debit use (1-10) 3) Moderate use (11-25) 4) High debit use (25+).  Naturally your goal is to get as many cardholders as you can into the high debit use category.  Not sure if a rewards program will accomplish this?  Visa research indicates that 40% of debit card users would increase usage with rewards.  The average spent on a debit card rose 22% when a cardholder could earn rewards, members of loyalty and rewards programs use their card about four times more than non-members.

While rewards may be a priority to some consumers, there are other debit perks that may attract attention.  For example;  Fidelity National Information Services  offers a variety of enhancements that can be offered with a Debit program.  The enhancements include Rewards, Extended Warranty, 90-Day Product Protection, $1,000 Identity Theft Reimbursement Insurance, Identity Theft Victim Assistance and a Personal Shopper service.

Just like with any other product, once you get the right offering, then it’s time to do the right promotion (over and over again)!  This is one program at your credit union that is SCREAMING with potential!  Don’t let the competition beat you to the right offering, (because they will)!

Thank you for reading Service Issues!

Service Issues is produced by Jane Bailey, Executive Vice President, and published quarterly by Delaware League Services, Inc.