AUSTIN, Texas-Businesses that want online services galore, including remote deposit and ACH, now have a second choice beyond the big banks here: Amplify Federal Credit Union.
"We discovered that currently only big banks are offering a full suite of online business services in the Austin area," said Karen Pollack, VP-operations at the $555-million asset CU. Amplify released its suite of new services in June.
But what the banks don't offer is personal service, Pollack said. "We go out to the business to set up their equipment, sign papers and provide training-whatever's needed to get people started or provide a refresher."
The Austin area offers fertile opportunity for growth in commercial deposits and lending, she said. "Our online business services will let Amplify compete with bigger institutions on offering a full-service package to business clients. We think we can fill a niche for the smaller business owner and capture a good share of this market."
Amplify's previous online banking system offered limited services, Pollack continued. That prevented the CU from vying for local commercial accounts, Pollack said. "In 2010, we switched to Q2eBanking because they offered a robust online banking platform for businesses. We're now able to compete for the business clients we weren't able to acquire before."
The remote-deposit capture service is the most popular of all the online cash-management offerings, she said. Amplify provides the scanner and same-day credit for deposits. "The service improves our business members' efficiency because they can make deposits right in the office instead of traveling to a branch."
'Morning Mingles'
Members also like ACH receipts, which give the business a cheaper alternative to credit cards for receiving recurring payments from customers, Pollack added. "The business isn't at the mercy of credit card companies with their high fees."
Credit-card fees fluctuate from month to month, which makes it hard for small businesses to predict income, Pollack said. Amplify ACH services charge a flat monthly fee with no sign-up costs or contracts.
ACH services allow business members to use a mobile device to send authorizations for payments, including payroll and wires, Pollack said. "It's critical to have dual control [online and mobile] with business banking. Mobile authorization allows the member to give the approval without being in the office." (Payments must first be set up on the CU's online banking site.)
Amplify has more than 1,200 business members, but the CU expects only 3% of them to use the online services in the next six months. "Our new services are off to a slow start because the current members aren't the target market for the new services."
The intended target is service industries where people pay by credit card or check-not cash, Pollack said. "Any business that aims for recurring business is an especially good prospect for our ACH and remote-deposit services, since they can save time and money using those services."
Amplify's cash-management offering also offers payroll direct deposit, multiple user permissions and wire transfers. Direct deposit makes payroll easier by automatically depositing paychecks that are the same dollar amount for each pay cycle, according to Pollack.
The CU can disable an online service for any particular segment of its business membership, such as micro-business, small business, business and sophisticated commercial clients, she added.
"Having all these services available helps us meet the business' needs with a tailored solution."
Amplify is marketing the services in part by offering "Morning Mingles, where members can have breakfast, network and see demos of the services," said Pollack.
