When opening new accounts, Educational Employees Credit Union (EECU) knows it is crucial to make sure that essential documents – such as disclosure forms, loan forms, PIN numbers, and ATM cards – are received by members in an accurate, timely fashion to make a good first impression and meet their expectations. So, when staff began to see an increase in the number of returned documents something needed to be done to rectify the situation. By verifying member data at the point of entry, EECU was not only able to improve member communications but also strengthen its CIP processes and fraud detection efforts.
Importance of Accurate Member Mailings
The monthly rate of returned mail at EECU was increasing because of incomplete and inaccurate member addresses. Executives were worried that these delayed documents would impact members’ trust and satisfaction levels. “These mailings are the first correspondence members receive from their credit union, so we’re committed to providing our members with accurate, timely information,” explained Paula Minugh, Manager of Support Services at EECU. To fix the problem, EECU sought an address verification solution to ensure that member addresses were entered accurately when new accounts were opened or updated.
“It was impossible for us to determine if an address was invalid by simply looking at it, particularly if an address was incomplete due to something like a missing apartment number,” stated Minugh. To solve the problem of inaccurate addresses, EECU deployed QAS Pro, a point-of-entry verification tool. The tool is used in branches during account set up as part of the CIP process and in Support Services to maintain the accuracy of addresses when updating existing accounts. “Every address is now verified with QAS Pro,” Minugh noted. “The solution prompts for apartment numbers and directional information, and will not allow an address to update unless it is accurate. Now entering incorrect addresses is almost impossible.”
Improving Compliance and Fraud Detection
Address verification has also helped EECU comply with the federal regulations outlined in the Sarbanes-Oxley, Patriot and Banking Secrecy Acts for the delivery of legal documents, such as disclosures or dividend reports. It has also assisted in fraud detection efforts. “QAS Pro has helped us enhance our fraud detection efforts,” Minugh concluded. “Most fraud begins at the address change, so we’ve centralized address changes in Support Services to minimize risk. We work diligently to verify a member’s signature each time we receive a request to update an address. With QAS Pro, if an address is unmatched, it can be flagged automatically, so that we know to send the member a document requiring a signature before an address change is made. This has reduced the risk of fraud.”
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To learn more about how point-of-entry customer data verification can improve your credit union operations, visit the Experian QAS website.