DES MOINES, Iowa-A lobby coin-changing machine is too expensive for a small Iowa credit union to afford by itself, but if it can convince the Iowa Credit Union Foundation that the machine will be a real convenience for members, the ICUF may grant money to help pay for it.
A $10,000 annual donation from a $2-billion credit union, Veridian CU of Waterloo, Iowa, enables the Iowa Foundation to make grants for technology and strategic planning to Iowa credit unions with assets under $25 million.
This year each grant to winning CUs was $1,875, according to Marybeth Foster, executive director of the Des Moines-based foundation.
"The requests come to us directly from the credit unions, not to Veridian," Foster said. "In the past they were wanting computers and fax machines. I would say that most often in recent times the credit unions are wanting interactive technology, a website update or a video production for the lobby."
Multiple Grant Winner
The $15.7-million Dubuque Teachers Credit Union, which serves 1,621 members, has received "four or five" ICUF grants so far, said CEO Jonathon Miller, including a coin-changing machine that would have been "a real luxury we couldn't have afforded." It uses the machines to serve DTCU members who otherwise would have taken their coins to a machine elsewhere.
"Our grant this year was for a branch-capture project to scan in checks and have them imaged so we can clear all our checks ourselves," said Miller. "In the past we would transfer them to another vendor to clear them all. It eliminated a lot of work for us because we can scan the checks in immediately."
"I estimate the savings at $100 to $200 a month in staff time and mileage by not having to deliver checks to another financial, which is a round trip of half an hour to 45 minutes on a daily basis," he added.
In the past, Miller said, when there was a problem with clearing a check, it would send a letter saying the check was invalid. That meant two or three days would pass before notification could be passed on to the member. "Now we can get notification back to the member the next day," he said.
When they receive a check, he said, "A lot of members want to know if it's good" and will ask for an image. "That's problematic if you have to get it from another financial where thousands and thousands of checks are deposited. Now we have immediate access now to anything deposited at the teller window. That helps a lot with member service."
Costs Covered
Miller said the branch capture equipment was a Panini Vision X 50/50 costing "about $3,200 including equipment, software and installation," only partially paid by the grant. The CU was able to cover the entire $1,200 cost of the coin machine by purchasing a refurbished Brandt.
The Iowa Credit Union Foundation was founded in 1995 with the mission of helping Iowans "build wealth, responsibility and independence, with the vision to eliminate poverty in the State of Iowa." Some funds from the annual $10,000 Veridian donation go to Iowa causes beyond the credit union sphere, according to the foundation.
