BARTLETT, Tenn. — After hearing complaints over slow delivery and recognizing the excessive cost of sending paper NSF notices to its members through the mail, First South Credit Union here decided it was time to make a big change.
The $344-million institution made the switch to eAlerts! from Trust Data Solutions after giving its members, all of whom were automatically enrolled, two months notice. The impact to service and the bottom line was immediate.
After paying the upfront cost for the product, every eAlert the credit union sends to its members is free. First South was paying 80 cents for every paper notice it sent under the old system; the switch to eAlerts! is saving the credit union about $240,000 annually.
"A paper notice would take five to seven days sometimes," SVP Information Systems Tammy Craig pointed out. "With eAlerts! they are notified immediately."
The electronic alert system also provides far more notification options than the paper-based system. Members can choose from a wide variety of notifications, including low-balance, payments-due, and large transactions among others, and have them sent to multiple e-mail addresses and even their mobile devices in the form of text messages. They can even set the system up to send them financial snapshots of their checking, savings and other accounts each day at a time of their choosing.
Though the range of services credit unions' choose to implement impacts the amount of time it takes to make the system go live, the transition is usually very quick.
"Once they decide they want to do it, it takes maybe a week to two weeks to get the programs written and tested," said Trust Data Solutions programmer Greg Garrison.
The paperless system not only contributes to the environmental health of the planet and the financial health of the credit union by saving money, but it has also boosted usage to First South's Internet and mobile services as Craig pointed to a "steady increase month to month" in home banking and senior VP of marketing Delynn Byars reported "huge spikes" in e-statement enrollments. The simple nature of each alert also provides greater security for members, as no account information is included in the notices thereby cutting down on the potential for identity theft.
Best Practices CUJ 2009
CU: First South
Best Practice: Replacing Paper NSF Notices
Vendor: Trust Data Solutions
