Positioning Credit Unions at the Center of Members’ Financial Relationships

One of the most exciting Internet technologies gaining attention in the financial services marketplace is member-initiated funds transfers between financial institutions. These Account-to-Account (A2A) transfers typically use the ACH network and allow members to use the credit union’s secure website to easily control the flow of funds between their various financial relationships.

 
 
The following is an excerpt from Callahan's just released 2004 Credit Union Financial Yearbook. This is one of many articles in this year's IT focused special report, which discusses technology and the importance of keeping up with innovations in today's economic environment.

One of the most exciting Internet technologies gaining attention in the financial services marketplace is member-initiated funds transfers between financial institutions. These Account-to-Account (A2A) transfers typically use the ACH network and allow members to use the credit union’s secure website to easily control the flow of funds between their various financial relationships.

Patelco Credit Union, a $3.1 billion community chartered credit union in San Francisco, launched their A2A service offering in October 2003. The credit union uses a product solution developed by CashEdge that combines A2A transfer capabilities with an account aggregation platform. This marriage of aggregation and A2A allows members to more actively manage their full financial portfolio through a single sign-on to Patelco’s home banking system.

Patelco chose to integrate account aggregation and A2A into its existing home banking view. Members can choose to view as many accounts from other financial institutions as they want to in addition to their Patelco accounts. All aggregated accounts, including Patelco’s account information, are by default displayed to the member when the member logs into home banking. The credit union’s goal is to increase awareness and usage over time as members learn how to add other accounts and realize the convenience of transferring online.

“This new online service strengthens the position of the credit union in our members’ lives,” explains John Shields, SVP of e-Business at Patelco. “Not only are we viewed very positively by our members for being a leading edge financial institution offering a valuable service, but we also hope to see more substantial relationships with the members who use A2A,” says Shields.

Since the technology was introduced in October 2003 over 4,500 members have enrolled. Adoption and usage rates are growing steadily at double-digits each month. The average transfer in December was just over $1,000 for the 900 transfers that occurred in the month. 541 transactions had been conducted in the previous month.

 

 

 

May 17, 2004


Comments

 
 
 
  • Timely information with perfect benefits laid out. I've met John Sheilds before and glad they shared their experience.
    Anonymous