ORLANDO, Fla. — A simple review can save many credit unions at least $20,000 annually.
Dave Serlo, president of Payment Services for Credit Unions (PSCU), told the company's annual Member Forum here that most credit unions have duplicative networks for which they are paying unnecessarily.
"We were able to save most credit unions $20,000 a year, and one Midwest credit union $140,000," said Serlo. "I believe there is money on the table right there that can be had just by reevaluating your networks."
Similarly, Serlo urged credit unions that do so to review whether they need to offer BOTH Visa and MasterCard.
Emphasizing he wasn't expressing a preference for one over the other, Serlo said credit unions issuing both cards often are doing so as the result of a decision made 25 years ago. "This is another golden opportunity for an active review," he recommended.
As for credit unions and their survival, Serlo looked to another expert on survival, Charles Darwin. He offered up Darwin's observation that "It is not the strongest of the species that survives, not the most intelligent. It is the one that is most adaptable to change."
"The key to survival will be in who can make adjustments to their business model," Serlo said. "We have two kinds of credit unions: those that are making adjustments, and those that are exiting the business."
Four areas where "smart, bold changes" are being made, said Serlo, are in the youth and young adult market; in call center outsourcing; in small business services, and in shared branching.
In terms of call centers (PSCU offers a 24/7 call center service), Serlo said many credit union have never broken out the actual cost of their member contact or call centers.
He reported that PSCU contracted with KPMG to study five credit unions that moved from handling their call centers internally and then moved to outsource. He said he was struck by just how much less the per-unit cost of a call was once the service was outsourced.
"What I also found rather significant was the pent-up demand by members to call you," said Serlo, pointing to one CU that went from 20,000 calls to 60,000 per month as soon as it went 24/7.
Serlo reiterated what others at the meeting also stated, that they see an opportunity for credit unions in the current economy.
"We are at a point in time in which I don't know if we'll ever find a more significant opportunity," he said. "We all went to school for this. This is as good as it gets to change and grow your credit union."
