PHILADELPHIA-Though members of Police and Fire Federal Credit Union have long been able to check balances, pay bills, apply for loans and basically conduct all of their banking business online, they and prospective members were still saddled with paperwork to open a new account.
"We have eight branches and most accounts were opened in the branches. We had new account packages that we sent out with paper applications and those would be mailed back in," said senior vice president Linda Rumick. "We did have an application on our website that people could print out and mail in as well."
Calling online account opening the "next logical step" in Internet banking, Rumick and other staffers at Police and Fire began a search two years ago for a company and application that would best suit their needs. They ended up going with Fiserv's iSwitchKit because of the application's security features and integration with the credit union's core system.
Fiserv Business Development Manager Scott Bowen said the two sides spent months going over intricacies in the software. He credited Police and Fire for changing the product as a whole as the conversations resulted in iSwitchKit having an in-branch model that tracks who took the original application to improve work flow, but also blends with the online and call-center origination.
"They helped us expand our product and now we can offer that to other clients who choose to use (it)," he said. "A lot of their ideas helped make the product what it is today."
"We have a lot of clients that are using this product and a lot of them may just use them in branch or they may just have them on the web. But there are a few credit unions that are taking full advantage of the product," added Kirsten Gardner, product marketing manager.
Account application volume has skyrocketed since Police and Fire implemented iSwitchKit. In just under a year, the $2-billion credit union has seen more than 3,000 applications pass through its system either through the online form or via the call center; it approved more than 800 of those requests. Rumick said less than 100 mailed applications came through the mail each month under the old system.
But higher volumes of any sort can lead to higher costs. Not so with iSwitchKit, Bowen claimed. The average cost of a new account opening, when one tabulates staff time and paperwork, is between $45-60; the electronic process costs about $15 per account.
In the end, though, Internet account opening is less about the bottom line and more about convenience for the member.
"We try to make sure we have every channel option so people can choose which way they want to go," Rumick said. "You want to make sure you offer your members and potential members the ability to join with ease. You want to make sure no matter how they want to access you that (you) can. We've pretty much covered all the bases this way."
BEST PRACTICES
Police and Fire FCU, Philadelphia
Category: Account Opening
Provider: Fiserv
