Reasons Why Credit Unions Should Consider Implementing Electronic Options for Members

Technology and the Internet have opened the door for many businesses, including credit unions. To remain competitive, improve member service and cut operating costs, credit unions are exploring ways to expand their electronic services. As a result, credit unions will increase their dependency on technology to deliver services and process information.

Typically, credit unions turn to electronic services to meet a variety of requirements, including:

  • Offering different payment methods to borrowers to increase collection rates and improve on-time payments
  • Reducing call center overhead
  • Increasing borrower satisfaction
  • Processing payments electronically to credit cards and/or mortgage platforms
  • Depositing funds into any bank account
  • Verifying member payments
  • Integrating Interactive Voice Response (IVR) systems to match the voice talent of an organization’s primary IVR system
  • Securing PCI-related compliance

These capabilities translate to a solution that offers specific features, such as:

  • Online Bill Presentment
  • Online Bill Payments
  • Mobility
  • Customer Service Representative (CSR) Payments
  • Direct Debit
  • Payment Concentration Processing
  • Automated Phone Payments
  • Lockbox Processing
  • Interactive Voice Response Services
  • Reporting

When a credit union offers robust electronic services, it realizes a wide range of benefits. Some of these advantages include the ability to:

  • Offer a comprehensive suite of customized solutions to consumers, including traditional and innovative services
  • Manage and grow operations
  • Improve operational efficiency through a robust set of payment methods without needing to commit internal resources
  • Enable safe and secure payment processing platform, software and mobile technologies
  • Improve research capability and provide faster responses to exception items
  • Increase efficiency and reduce integration costs
  • Provide automatic text message notification system to reduce inquiries from borrowers

At the same time, a credit union’s customers receive:

  • Greater peace-of-mind through rigorous security standards, including encryption and fraud prevention
  • Quicker online bill presentment, online bill payment and mobile payment options
  • The flexibility and convenience to pay whenever and wherever they want
  • Automatic text message notifications to avoid late and missed payments

Prior to implementing electronic services, credit unions must carefully conduct their due diligence and planning activities. Some examples of what should be done include:

  • Evaluating member expectations
  • Evaluating internal expertise and resources
  • Evaluating access to external expertise and resources
  • Assessing the risks
  • Determining the required controls necessary to mitigate risks and maintain system security
  • Developing effective policies and procedures for electronic services

Electronic services will provide important benefits to credit unions and their members. By partnering with the right payment processing company, credit unions can create a secure, service-enhancing operation.

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