Branch Capture Speeds Up Check Processing, Survey Finds
DALLAS-While credit unions acknowledge the importance of cost reductions related to branch capture "greater efficiency" is cited by more than a three-to-one margin as the most valuable benefit gained, according to a new study by Southwest Corporate.
Southwest Corporate said it surveyed its more than 450 branch capture users with 124 CUs responding. The corporate said 78% cited greater efficiency as a primary value of branch capture, while more than 16% identified "reduced costs" as the leading benefit.
Credit unions were asked to rank the most efficient aspects of branch capture from a list of five options. Credit unions cited the following as the top three efficiencies gained:
* Scanning checks eliminates hand encoding, enabling staff to pursue other important tasks.
* Transmitting deposits throughout the day speeds work flow and saves payroll expense.
* Online archival provides more timely access to images and eliminates a separate microfiche or image process.
The 124 CUs responding to the survey ranged in asset size from under $10 million to more than $1 billion. Nearly two-thirds of the respondents were in the $20 million to $200 million range. Responding credit unions represented more than a dozen states, stretching from Florida to Washington.
For more info: www.swcorp.org
Stakeholder Collaboration Key For Proximity Mobile Payments
PRINCETON JUNCTION, N.J.-The ability to pay for transit, groceries, and other products simply by waving a cell phone near a point-of-sale (POS) device represents a new era of payments-and a bevy of new security concernsm as well.
According to a new white paper from the Smart Card Alliance, managing security in an ecosystem where financial institutions, mobile network operators (MNOs), and others need to come together to mind their own unique aspect of the payment process will require intense collaboration.
The white paper focuses on a "collaboration model," in which financial institutions, MNOs, trusted third parties and other stakeholders in the mobile payments ecosystem cooperate in the management and deployment of mobile applications.
"There is no question consumers love mobile technology and view it as a necessity in their daily lives, so it makes sense for the next step to be paying with cell phones," said Randy Vanderhoof, executive director of the Smart Card Alliance. "This white paper explains how industry stakeholders can take advantage of this love of mobile technology and introduce secure proximity mobile payments by collaborating and leveraging proven technology and a merchant infrastructure that is already in place."
For more info: www.smartcardalliance.org
Lost Confidence Puts Billions At Risk In Massive Bank Switch
NEW YORK-A new survey found the recent stormy climate in the financial services industry has done serious damage to consumer confidence in banks.
Interbrand, a brand consultancy based here, surveyed 2,000 household financial decision-makers to determine if and how consumers' perceptions of financial services brands have changed due to the economic crisis. Interbrand's analysis says concerned customers not only are thinking of changing banks-they are doing it.
"We found a significant portion of America's deposits are at risk; there's over $600 billion of money in motion as one out of three consumers report they are considering switching their primary financial services provider," said Andy Bateman, CEO of Interbrand.
The consultancy said consumers with higher bank balances were the most skittish. Almost a third of those with more than $10,000 socked away were likely to change their primary banking institution, and 13% have already done so.
Interbrand found 60% of banking customers no longer trust any provider. The company said this rampant anxiety means the financial services sector is being forced to learn an important, and valuable, lesson about the way it does business.
"The economic crisis has traumatized consumers, and the industry must address the fact that those consumers' attitudes and behaviors have changed for good," Bateman said. "It's a whole new landscape, one in which brand and its careful management will be a key driver of choice for the foreseeable future."
For info: www.interbrand.com
Long-Term Implications Of Mortgage Meltdown Revealed
SILVER SPRING, Md.-The National Foundation for Credit Counseling (NFCC) said its recent housing survey revealed almost half of all American adults, more than 100 million people, no longer believe homeownership is a realistic way to build wealth.
This is counter to the long-held belief that buying a home and building equity should be a major component of a person's financial strategy, the NFCC noted. Other findings from the survey were equally reflective of this new attitude toward homeownership. Almost one-third of those surveyed, do not think they will ever be able to afford to buy a home. Forty-two percent of those who once purchased a home, but no longer own it, do not thing they'll ever be able to afford to buy another one. Of those who still own a home, 31% do not think they'll ever be able to buy another home (upgrade existing home, buy a vacation home, etc.). Seventy-four percent of those who have never purchased a home felt they could benefit from first-time homebuyer education from a professional.
For info: www.nfcc.org
KPMG Study Lauds Outsourcing Call Centers
ST. PETERSBURG, Fla.-A study by KPMG analyzed six credit unions' transition to PSCU Financial Services' call center services and said the subsequent business impact was positive.
According to the report, extending service hours to 24/7 not only reduced abandon rates while improving member satisfaction, it also reduced expenses. The credit unions outsourced call center operations to PSCU Financial Services' Total Member Care for various reasons, including a desire for business continuity, increased member service levels and cost reduction.
The KPMG study found marked improvements in efficiency and reduced costs. Overall, abandon rates dropped from up to 15% to an average of 3%. Speed of answer improved from 2 minutes to 4 minutes to just 30 to 40 seconds. And single call resolution rates jumped to 86-96%.
One small credit union reduced cost per call by 71% while experiencing an increase in call volumes due to longer hours of operation. One large credit union that outsourced after-hours support realized savings of $430,000 (83%) when compared to using internal staff for after-hours support.
For info: www.pscufs.com
Alternative Payments To Be In Conference Spotlight
LAS VEGAS-Alternative payments are projected to reach 30% of online payments by 2012 as consumers increasingly choose free payment solutions for their convenience and security advantages, while merchants continue to steer consumers to low-cost payment alternatives.
The ATM, Debit & Prepaid Forum, Oct. 18-20 at Caesars Palace Las Vegas, will take a detailed look at the opportunities for CUs in emerging and alternative payments with a dedicated track on the topic. Other confirmed sessions will cover the evolution of online payments, an alternative debit system, revenue opportunities in mobile payments and mCommerce readiness. The ATM, Debit & Prepaid Forum is a SourceMedia conference. SourceMedia is the parent company of Credit Union Journal. For info: www.sourcemediaconferences.com/ATMDebit09/
How Online Scammers Are Using The Financial Crisis
SAN FRANCISCO-MarkMonitor, a provider of enterprise brand protection, recently released its latest "Brandjacking Index," which studies how fraudsters are abusing major financial brand names and subjects such as refinancing or unemployment to lure unsuspecting consumers to questionable websites.
Examining four leading financial brands, the research indicates opportunistic fraudsters are quick to target citizens looking for ways to get back on their feet from financial challenges and the housing market bust. The research shows "profound" brand abuse, most notably through phishing and suspected domain squatting. More than 7,300 cybersquatted domains were identified targeting the four financial brands in the study. Fraudsters registered domains that combined those financial brands with the focus terms at the rate of more than one domain per day between September 2008 and April 2009. Phishing attacks against the four financial brands numbered 10,000, representing a 36% increase in Q1 2009 from the previous quarter.
For info: www.markmonitor.com
