Credit unions and banks offering Account-to-Account (A2A) transfers on their
websites have experienced an increase in balances and member retention.
A2A is the ability to electronically move funds between two accounts held by
the same member at different financial institutions. Credit unions that offer
A2A transfers have an opportunity to be the central financial institution for
members who typically hold accounts at multiple financial institutions.
While the added value of A2A for a member is clear, widespread adoption of
A2A has been slow to occur because the benefits to the credit union have been
less obvious. There has also been perceived concerns in the outflow of assets by providing an even easier way to transfer funds from a credit union to an alternate institution.
However, several credit unions and banks with unique A2A strategies have found
that external transfers may actually bring in more funds than are sent out to
other institutions. In a recent American Banker article, Citibank estimated
that 80-85 percent of their online A2A transfers are inbound. At Digital Federal
Credit Union, that number is even higher - about 90 percent of the total funds
transferred through their A2A program in a given month are incoming deposits.
Additionally, the convenience of using the credit union as a central account
may prompt more members to use direct deposit of their paychecks. State Employees
Credit Union in Michigan offers A2A transfers and has noticed an increase in
direct deposits since they began to offer the service.
Since A2A provides members with a convenient means of managing their finances,
it is not surprising its implementation would encourage member retention. E*Trade
Bank has noticed that their customers who make use of A2A transfers had lower attrition
rates than those who did not.
Once the “e-member” has the ability to conveniently transfer funds to and from
any of their financial accounts, the credit union can become the most convenient
of their accounts. It positions the credit union as the member's financial hub
and reduces the incentive for them to take their accounts elsewhere.
Learn more about A2A strategies from a webcast of one of this year's most popular
(A2A) Transfer Strategies: Enhancing the e-Member Experience. The event
featured three credit union discussing their successful A2A transfer strategies.
Find out more by clicking