Credit Unions of all sizes have realized the benefits of offering online Account-to-Account (A2A) Transfers, including increased incoming funds, greater member loyalty, and reduced staffing demands.
A2A fund transfers offer "self-service" capability to members to
conveniently manage their entire financial portfolio in a 24x7 environment.
Strictly speaking, Account-to-Account transfers refer only to the ability to
transfer funds between two accounts owned by the same person, but held at different
Increase Incoming Funds
A recent survey conducted by the Callahan
& Associates Survey Consortium found that 40% of e-Members who had accounts
at other institutions indicated they would be likely to transfer funds to their
credit union using online funds transfer. Given the chance, will their actions reflect their words?
Experience thus far with credit unions that offer the service has shown that
in general the majority of money is flowing into the credit union. CashEdge,
a company that offers A2A for both credit unions and banks, estimates that approximately
75% or more of the A2A transactions they process are inbound transfers. Digital
Credit Union (MA) has found that approximately 90% of the A2A transactions their
members conduct are inbound transfers.
A major opportunity exists right now for credit unions to become even more relevant
to their existing membership base by offering core self-service transactional
capabilities that are available on a 24x7 basis. By openly acknowledging that
members have other accounts and then proceeding to lower the barriers to conducting
easy self-service transactions between all accounts, the credit union positions
itself as the central account for managing all of a member's finances.