BELLEVUE, Neb.-SAC FCU was losing business because of an outdated Internet banking system.
Bill pay transactions were stagnant, said Roger Kipe, VP-IT at the $516-million CU. People who wanted to open accounts online went elsewhere.
"The demand for online services is becoming more prevalent, but we weren't seeing much of an increase in logins," Kipe explained. "We decided to set up an online banking site that would eventually allow members to do online everything they could do in a branch."
Five months after migrating to a full-featured online banking system, Q2 online banking, total logins have nearly doubled, to 9,000 per day, up from 5,000, he said. Kipe said he thinks that's because the new site has so much more to offer. "The more members login, the more they're using the system. Q2 gave us a much better functionality set."
Take instant online account opening, delivered by Andera and integrated with Q2. SAC is enrolling an average of 1.5 new members per day since launching online account opening two months ago, said Kipe. In the first month, SAC took in $100,000 in checking and savings deposits from 45 new members.
Online account opening is not siphoning new accounts from other channels, Kipe confirmed. "These new online accounts are from people who were going to open accounts somewhere online and did so with us because we provided them with the tools they needed."
Online account opening could prove particularly valuable for SAC's expanded FOM, which recently grew to eight counties from four, said Kipe. SAC has no physical presence in the four new counties, so online account opening is the only way for potential members to easily connect with the CU.
"The interesting thing is that 43 of the 45 new members enrolling online that first month came from our existing counties, which have physical branches," Kipe added.
Transactions Are Up
Bill pay transactions are up to an average 14,500 per month since SAC switched to Q2, he continued. That's up from 12,500 per month. "Even though it costs us more money to pay more bills, we think bill pay keeps members banking with us."
SAC members can bank on the go using SAC's mobile banking site or iPhone application - and soon an Android phone application, all delivered by Q2. And they can monitor all their SAC and external financial accounts online for free, using the Q2 personal financial management software, integrated into the SAC Internet banking site.
SAC is plugging the new Internet banking site on TV and radio, but member service representatives are also "happier with the tools, so they're bragging about online banking more and talking about functionality with members," said Kipe.
SAC began accepting online loan applications last month using a tool the CU built, he said. The tool captures applicant data for entry into the CU's core system.
Q2 is "growing fast, so the online banking implementation had a few bumps," Kipe said. "But Q2 takes care of us, and we would still choose them if we had it to do over again."
Kipe said he is "really comfortable" with Q2's approach to the new FFIEC guidelines for Internet banking authentication. "We're making a big push for business accounts. Q2 uses a tool that monitors individual ACH and wire transactions for fraud. We get alerts if the transactions are out of the ordinary online behavior for the business."
About 50% of SAC's checking and savings account holders bank online, according to Kipe.
