TALLAHASSEE, Fla. -
CUJ: Last week you announced expansion of the CU HERE program. What does that entail?
Park: Ten years ago Credit Union 24 created CU HERE, a reciprocal surcharge-free ATM program where participating credit unions agreed not to charge each other for member transactions. Over the years, we’ve added more surcharge-free ATMs to the network with Publix Supermarkets’ Presto! network terminals and MoneyPass locations for a total of just over 12,000 surcharge-free ATMs.
In December we created the CU HERE Premium program by adding Allpoint Network ATMs to CU HERE, creating the nation’s largest surcharge-free ATM network (approx. 45,000 locations). The program is available to CU HERE-participating credit unions on an opt-in basis; hence the need for a separate program name.
We’re doing this to give credit unions an edge in their markets. With ATM fees on the rise, consumers are looking for broad surcharge-free access. What better way to attract consumers to credit unions than by offering close to three times the number of fee-free ATMs than the largest bank fleet?
CUJ: How long was this announcement in the works and what is involved in making this a reality?
Park: Credit Union 24 has been working closely with Allpoint for most of last year to make this arrangement a reality. We’re using the first year of the program to assess the value CU HERE Premium’s 45,000 surcharge-free ATMs will add to a credit union’s recruiting and retention efforts. So, to get as accurate an assessment as possible–as early as possible–Credit Union 24 decided to offer the program to credit unions at no cost through at least Feb. 6 of next year.
Early in the program we will be assessing the viability of continuing our full or at least partial support of the Allpoint portion of the program based on the ability of the program to support credit union growth and retention objectives. When we cooperatively decide to continue the program after February, we’ll use our collective credit union transaction volumes to ensure economical surcharge-free access for credit union members.
CUJ: You note you have the largest surcharge-free network in the country. How will you raise awareness of this with credit unions?
Park: Most of Credit Union 24’s CU HERE participants have already enrolled in the program since December, and more opt in daily. Credit Union 24 is also undertaking an aggressive communications campaign, including advertising, public relations and direct mail to promote the program to the credit union community at large. We’ll also be promoting the nations’ largest surcharge-free ATM network at the GAC in February.
Credit Union 24 is also devoting a considerable amount of effort to educating the general consumer about the credit union difference, using the announcement of the nation’s largest surcharge-free network–and the savings it represents–as an opportunity to encourage consumers to seek out credit union alternatives.
CUJ: In turn, how will credit unions raise awareness with their own members?
Park: The real value of the CU HERE Premium program is found in a credit union’s ability to attract and retain credit union members. For this reason, Credit Union 24 is making available a series of marketing and informational pieces promoting the program to a credit union’s current and potential member base. Statement stuffers, branch posters, web banners and even graphic elements that can be added to existing credit union communications will be available, and are designed to be customized by the credit union.
CUJ: What else might CU24 member credit unions look forward to?
Park: Credit Union 24 is always seeking out new opportunities to help credit unions compete in the marketplace and remain a viable alternative to “traditional” financial institutions. Among Credit Union 24’s future initiatives will be expanding the relationships the cooperative has with merchants.
As the country’s only credit union-owned point-of-sale (POS) network, Credit Union 24 is in a unique position not only to maintain credit unions’ voice in the payments industry, but also to be able to develop relationships between merchants, credit unions and cardholders. We’ll be exploring programs that enhance that interaction, and that will ultimately work to strengthen the relationship a credit union has with its cardholders.
CUJ: In the larger picture, how do you view the future of networks and payments?
Park: The future of EFT is continued consolidation. As the larger entities in the industry acquire more and more of the independent regional players, we’ll see fewer and fewer choices in the marketplace. The large, publicly held payments conglomerates will likely be able to attract financial institutions with greater economies of scale in the short term but, as they do, they will work to restrict the number of alternatives in the market.
That’s essentially the reason Credit Union 24 was founded 25 years ago, and why we continue to thrive today. Credit Union 24 has established an ATM and POS alternative for credit unions in the electronic payments industry, ensuring that the voice of the credit union community continues to be heard.
