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Schools Financial Credit Union Enhances Member Relations With PSCU Financial Services PayLynx Solution

In today’s fast paced world, time management and convenience are of the utmost importance. One proven method for freeing up valuable time is electronic bill payment (EBP). In the credit union industry, credit unions often search for value added conveniences and enhancements for their membership. Schools Financial Credit Union (Schools) wanted to offer a product that would provide exceptional convenience and value to its members. Strengthening membership relations is key to Schools’ mission. The credit union asked its partner, PSCU Financial Services (PSCU-FS), for a solution. PSCU Financial Services’ PayLynx was the answer to enhancing Schools’ member relations and increasing profitability.

Partnering with PSCU Financial Services

In 1996, Schools Financial Credit Union, based in Sacramento, California, became a member of PSCU Financial Services. PSCU-FS, based in St. Petersburg, Florida, is a full service provider of turnkey solutions for Credit, Debit, ATM and Internet Banking. PSCU Financial Services’ PayLynx Solution offers credit union members a convenient, quick and easy method of paying their bills. The solution offers hosted, branded, web-based bill payment that can be integrated seamlessly into a credit union’s web site. More importantly, PayLynx increases brand identity while strengthening member retention and loyalty. With many financial institutions offering electronic bill payment services, PayLynx can bring credit unions to the forefront of technology while keeping them competitive in the marketplace. Plus, PayLynx is a great tool for increasing cross-selling opportunities and offers 24 x 7 call center support. Nathan Schmidt, Electronic Services Branch Manager for Schools Financial Credit Union, said, “PSCU Financial Services’ PayLynx was implemented effortlessly into our web site and is known to our members as Schools BillPay. Our members just have to log in and in a few moments, they can pay all their bills freeing up time for other activities.”

PayLynx and Promotions

While members value the bill pay service once they have used it, getting them to be comfortable in trying PayLynx for the first time can sometimes be a challenge. Schools Financial Credit Union decided to offer PayLynx free to members who had a direct deposit and offered a premium incentive, Get a Bill Paid Sweepstakes promotion. Schmidt stated, “Bank of America was an influence when we decided to offer our BillPay product free to our members. Online services are no longer nice-to-haves, they are must-haves. If your financial institution does not offer low cost products and services that your members want, your members will seek services elsewhere.” Schmidt continued, “The majority of our BillPay members have direct deposit and if you offer your members a free qualifier, they tend to sign up for the offer. By making PayLynx free, I believe we have made it more enticing for members that were interested, but hesitant in trying our service.” The credit union has been offering the free-with-Direct-Deposit program for over five months. Before the launch of the new fee structure, the credit union averaged 70 new BillPay accounts per month. According to Schmidt, now that they’ve added a free qualifier, the credit union has seen an increase to 157 new accounts per month.

Results

After compiling Fall 2002 data, Schmidt and his colleagues found that Online Banking and BillPay members are 16% more profitable based on comparing such aspects as: average monthly account balances, Certificates of Deposit (CDs), and outstanding loan balances.

Also, the number of account relationships for members enrolled in online services and BillPay was greater than members that don’t, averaging 4.01 versus 2.47 for all members (see chart below).

	Online Banking and BillPay	Checking Without Online Services	All Members
Spring 2002	3.68	2.98	2.14
Fall 2002	4.01	3.52	2.47

Conclusion

With PSCU Financial Services’ PayLynx Solution, credit unions can offer their members the utmost in convenience while enhancing their profits and creating long-term, rewarding relations with their members. Schmidt shared, “At this point, making the BillPay service free with Direct Deposit has been a successful decision. Securing a member with Direct Deposit is key for a long-term relationship, but couple that with an online BillPay account and you’ll have a lifetime relationship with the member.” Easy, low-cost implementation with high value return is what PayLynx offers. Schools was able to enhance their member relations and increase the number of accounts by offering its membership a convenient, no hassle BillPay service. From Schools Financial Credit Union’s and PSCU Financial Services’ viewpoint, keeping members happy is key to success!

If you would like additional information on how your credit union can benefit from the PayLynx Solution, please contact your PSCU Financial Services Business Development Consultant today!