July 2010
Updated Network Rule Changes
Effective July 1, 2010, all credit unions must follow the Updated Network Rules.
The Teller Reference Guide has been updated, as well; to reflect the changes to the rules, please provide your tellers with the Updated Copy.
If your credit union has questions regarding the rules, please feel free to contact Sandy Shenk.
Updated In-State Rule Changes
Effective August 1, 2010, all credit unions must now follow the Updated In-State Network Rules.
As outlined at the Users Meetings, we have changed the dollar amount where checks and money orders should be faxed to other in-state issuers to indicate when the dollar amount of the “aggregate” totals or exceeds the amounts all checks copies – front and back – should be faxed to the issuer. We have found that due to the Reg CC changes eliminating non-local, credit unions are monitoring deposits more closely.
We appreciate everyone’s feedback on this change during the June Users Meetings and we ask that if your credit union has any questions regarding the change to please contact Sandy Shenk.
Shared Branching Marketing Resources
PaCUSC has recently made changes to their website. We encourage you to take a look at the resources we have put at your fingertips.
Your credit union also received a marketing packet in the mail in June to help you market shared branching to your members. The packet provided a CD with various marketing material. We have provided newsletter articles, sample letters and MSR talking points, web banners and FAQs. Samples of printed collateral are also available to your credit union from the CO-OP Shared Branching Marketing Resource Center website, www.marketingresourcecenter.net.
We hope this helps your credit union market shared branching and educates your members about the convenience of your credit union.
If you have questions or need assistance resizing any of the graphics, please feel free to contact Sandy Shenk.
Demand for Shared Branching Surprisingly High Among Younger Members
New research findings reveal that not only are shared branch users some of the credit union industry’s most profitable members, but the availability of physical branch locations is in surprisingly high demand among younger members.
The highlights of the two-year study, conducted on behalf of CO-OP Shared Branching by Raddon Financial Group (RFG) of Lombard, Ill., were released at the CO-OP Financial Services’ THINK 2010 Conference.
“It’s no secret that convenience is essential to consumers,” said Carroll Beach, President/COO, CO-OP Shared Branching. “This study gives us the hard data demonstrating that shared branching makes credit unions more accessible, which leads to deeper relationships that help retain active and profitable members.”
Key findings include:
- A total of 38.6% of the households that use shared branching are profitable, which is 10% more than the 28.8% of households that do not use shared branching and are profitable. On average, the annual household profit for shared branching users was $90.25, compared to profit of only $7.07 on households that do not use shared branching. After applying the direct costs associated with shared branching transactions, the average profit was $47.53.
- On average, 6.8% of member households actively use shared branching (defined as completing a transaction in the last 90 days), however usage variance among members ranged from 1% to 18% by credit union. The households that do use shared branching are likely to use it regularly, with 47.9% conducting 25 or more transactions each year.
- Although the younger member segments do not have as large a base in the organizations analyzed, they are more likely than the older segments to utilize shared branching. “This may come as a surprise because younger segments are generally more inclined to use new electronic channels,” said Beach. “However, RFG research shows that younger users do not limit their ability to access their accounts and branches remain significant for them.”
- There is a correlation between households that are profitable and their use of shared branches, partly due to the profile of types of products used by these households. For example, use of share draft accounts is high in shared branch households. Share draft accounts are generally held in the owner’s primary financial institution; share draft is a high transaction account and generates a significant portion of an institution’s non-interest income, so the households with these accounts can be more profitable to the institution.
- Deposits are the most common transaction type after member verify, accounting for 26.2% of all transactions with an average amount of $1,226. Withdrawals (15.8%) and balance inquiries (11.3%) were other common transactions.
- The highest level of transaction volume occurs between 10a.m. and 2p.m. Friday is the single busiest day of the week, with Monday following closely behind.
- Households located more than 20 miles from one of their credit union’s proprietary branches account for 36.7% of the households that actively use shared branching. On the flip side, households that have a proprietary branch in close proximity are a smaller percentage of shared branch users. However, the group in the middle still has strong usage patterns of shared branching, indicating that some households will use the shared branching network even if it is only slightly more convenient than one of the credit union’s own branches.
- Members of the credit unions in this study on average used 509 shared branch locations. However, members of one particular credit union analyzed used more than 1,900 locations.
The study was conducted over the course of 2008 and 2009, and analyzed the shared branching activity of 25 credit unions representing various geographic regions, asset sizes and charter types. For more information on the study, please contact Sandy Shenk.
Marketing Tips by American Airlines Federal Credit Union
:In May of 2009, AA Credit Union launched a campaign to market shared branching. The campaign titled “We’re Here, There, Everywhere” combined a shared branching and ATM convenience message to their members.
During the first month of the campaign, AA Credit Union saw an increase of around 440 transactions compared to the same time the year before. The campaign included flyers, statement inserts, postcards, and also featured their handy access card. “The graphics were very pleasing to look at, easy to read and understand, and most importantly gave members the tools they need to find shared branching locations,” stated Lori Reeves, VP Marketing & Business Development, AA Credit Union. “The bonus is the access card that members can take with them.” The access cards are sized to fit into a wallet, and include information on how to find shared branching locations and ATMs.
Another useful tool for the members’ convenience is the web locator tool that is on the front page of the AA Credit Union website. Members can easily locate shared branching locations or ATMs near them through this locator service, or through their downloadable App. “Members want to know we are convenient whether they visit a branch often, or not. Staying up-to-date with new market trends like downloadable Apps is the key to staying in the game,” said Reeves.
In order to emphasize these options, AA Credit Union also did a mailing directed to youth, which was a new avenue that they chose to explore this year. “Youth has unique convenience needs, such as texting options, mobile banking and downloadable applications, which we emphasized in the mailing,” said Reeves.
AA Credit Union knows that members want convenience, and shared branching is one of the most convenient services a credit union can offer. Whether cross-selling shared branching as an added member benefit with other products, or offering multiple tools to locate branches, AA Credit Union is always looking for ways to market shared branching to their members. Through the marketing campaign, AA Credit Union successfully educated their members on the additional benefits of shared branching and ATM services they provide.
Calling All Credit Union Enthusiasts!
Enter to Win The $10,000 CO-OP THINK Prize!
At THINK 10, visionaries from a range of backgrounds shared their insights on catapulting credit unions forward. Now CO-OP is giving the credit union industry regular Joe’s a chance to share their own visionary ideas to propel the credit union movement forward, and offering the winner with the most innovative and shareable idea the $10,000 CO-OP THINK Prize to get started on making their idea a reality.
CO-OP Financial Services announced the CO-OP THINK PRIZE during the THINK 10 conference held in April in Scottsdale, Arizona. “Credit unions are unique in their ability to collaborate and share ideas,” said Stan Hollen, President/CEO of CO-OP Financial Services. “We developed the CO-OP THINK PRIZE to leverage that collaborative ability and aggregate the impressive talent, resources and intellect within the credit union movement.”
The award is intended to go beyond competitive issues and produce progressive thinking that all credit unions could apply to their own institution. Entrants will be judged by Filene Research Institute using the following criteria:
- Impact – The thinking must be big enough to make an impact and propel the movement forward.
- Creativity – The idea will be tested for its inventive, innovative, progressive and inspired thinking.
- Aggregation – An idea that is cooperative and collaborative in its ability to succeed and it must be shareable.
- Persuasion – The top three entrants will present their ideas at next year’s THINK 2011 Conference and the winner will be selected by the audience.
Filene Research Institute will select three finalists who will receive an all expenses paid trip to THINK 11, where they will present their ideas to the conference attendees, who will ultimately vote for the winner. The winner will not only receive the $10,000 seed money, they will also win additional pledges of support from Filene Research and THINK 11 sponsors to help make their idea a reality. Not to mention bragging rights among peers.
Got an idea that you think might be a winner? Visit www.co-opthink.org for more details. Exact criteria and entry forms will be available on the website soon.
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For additional information, contact Sandy Shenk, PaCUSC State Coordinator, 800-932-0661, Ext. 5267.