PLEASANTON, Calif.-1st United Services Credit Union is looking to build its online channel, leading the effort with its "virtual checking" account.
The $750-million CU's virtual account offers many of the same features and benefits as most checking accounts, such as free online banking, e-statements and bill pay, but with an additional benefit for what it terms the "online savvy member." The account offers an APY as high as 1.25%, which it said is higher than similar products in the U.S. market.
Greg Pulliam, 1st United Services CU's chief administrative officer, said the idea behind virtual checking was to offer an online-only product for new members (although existing members are eligible) who never go to a branch.
"It has a higher dividend rate for people who do not go to the branch and use teller services," he noted. "In 2010 we will be focusing on the online channel. We will be doing some advertising only online. New members can open a virtual checking account online. The plan is for current members to be able to open the virtual checking account online in the next month or two."
Pulliam said 1st USCU has added several web-based products and features in recent years, including "Deposit @ Home," "Virtual Money Mover" and mobile banking. All are designed to improve members' access to their money.
"Deposit@Home has been very popular," he said. "Members can fund their checking accounts with only an Internet connection - they input the details of the check and then mail us the physical check within seven days.
"We have quite a few members who live outside the Bay Area who are not near a branch, and they are quite excited about these products," he continued. "They have a long-standing relationship with the credit union and want to continue to be members, and these products allow this to happen."
1st USCU serves more than 50,000 members from 11 San Francisco Bay Area locations. Founded in 1932, it's open to anyone who resides or works in Alameda or Contra Costa counties.
