BURLINGTON, Mass. -
The corporate, which recently bid a fond farewell to the last of its paper check processing equipment (see related story), designed CDC in house in order to be able to offer it to credit unions at such an affordable price that CUs will be able to offer it to members for free.
"This is a real breakthrough in technology that allows members with access to an inexpensive scanning device either at their home or office to scan a check and send it to the credit union for collection," EasCorp SVP-Marketing Alan Bernstein told CU Journal. "It solves a problem that credit unions have, especially if their members are widely dispersed. This is also a great member retention tool. Members who move away and drop the credit union because it's not convenient will find it's easy to stay with the credit union no matter where they move."
EasCorp is banking on scanners becoming a common household item, now that they can be purchased for as little as $40 and are often integrated into desktop printers. As long as a member is signed up for a credit union's online banking service and has access to a scanner, there is no need for the member to purchase any hardware or software to participate in CDC.
When a member logs onto a participating credit unions online banking service, there will be a button to click on for depositing checks. When the member clicks on that button, the member is taken to an EasCorp site that will be tailored to look as if the member has never left his or her credit union's site. Once there, the member is coached through scanning in the check and submitting it to the credit union. The image temporarily resides on the EasCorp server until a credit union employee logs on, reviews the check and then releases it into its regular cache of images to be processed by the corporate and then deposits the funds into the member's account.
Under CU's Control
George Dow, EasCorp's assistant vice president, member relations & product development, noted that credit unions will appreciate that even though the image resides on EasCorp's server, the natural person credit union maintains control over that image, choosing when-and if-to release the image into its cache of images heading to the corporate for processing.
Other image capture providers are offering similar programs targeted for small businesses, but EasCorp says its CDC program is more affordable than others already out there. "Licensing fees are usually expensive for this," Bernstein explained, saying the price range is typically $35 to $60 a month plus transaction costs. "But ours is going to cost the credit union on average less than $1 a month, so credit unions will be able to offer it for free to its individual members or charge a very modest fee to small businesses."
While credit unions with strong business service portfolios will be interested in this new offering, Bernstein said those credit unions that serve members of the military may have a special interest in this, as well.
Competing With USAA Bank
"USAA Bank has something similar to this and has a history of serving the military," Bernstein noted. "If defense credit unions want to compete with them, they're going to want to take a look at this. We had a number of members ask, 'can we do what USAA is doing?' Now they can."
Digital FCU, Marlborough, Mass., and Hanscom FCU, Bedford, Mass., are currently beta testing EasCorp's CDC, and both laud how the program will make their credit unions even more convenient to their members.
"We're glad for the opportunity to pilot this program," he said. "We have more than 300,000 members, many of whom are spread across the country, 150,000 of whom are online banking users," said Craig Roy, DCU's vice president, support services. "They are fairly tech-savvy, so it's a natural fit for them and us."
Hanscom FCU SVP-Strategy and Delivery Scott Post agreed. "What we're most excited about is the flexibility and power it gives us, at Hanscom," Post said. "No matter how many branches you have, it's never enough. There are always members outside your reach or for whom the branches' operating hours aren't convenient."
