Visions - May 2006Click a headline below to view articles:
$21 million saved…Our Fraud Detection Service has prevented fraud on more than $21 million at risk during the first quarter 2006.Managing fraud exposure tightly we continue to outperform the industry. Our team limited fraud losses to less than a third of what is experienced in financial services industry at large. Industry wide, the average dollar lost per fraud case is $800 for credit card cases and $600 for debit --- we’re proud that we’ve consistently limited fraud losses to under $300 for credit and debit cases combined. Top
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The Fraud Detection Service offers credit unions the following benefits:
Users can also benefit from
potential savings on bond
coverage premiums. |
make sure that it was Dennis May—and not someone else—requesting a cash advance from his Visa card. It doesn’t get much faster.
Fraud prevention is a critical element in credit unions’ credit and debit
card portfolios. PSCU Financial
Services protects credit unions and their cardholders with the most advanced industry-leading fraud management software that both detects and prevents fraudulent activity.
PSCU Financial Services’ fraud management software solution contains a decisioning engine that examines and ranks each transaction using a database of both merchant and cardholder data. This software can approve or decline transactions at the point of sale based on its risk review. If a transaction is identified as high-risk, a member of PSCU Financial Services’ specialized fraud
detection team calls
the phone numbers on file to verify the validity of the requested transaction.
“Our staff can spot trends and adjust authorization strategies on the fly
to counter fraudulent attempts on cardholder accounts. Fraud prevention not only saves time and money for credit unions, it also boosts member loyalty and confidence,” said David J. Serlo, President of PSCU Financial Services.
Dennis May,
a member of
Aerospace Credit
Union in St. Charles, Mo., firmly believes
that his credit union is looking out for his best interests, thanks to this exceptional
service, according to Jeni Harris,
Plastics Coordinator at Aerospace Credit Union.
the phone numbers on file to verify the validity of the requested transaction.
to counter fraudulent attempts on cardholder accounts. Fraud prevention not only saves time and money for credit unions, it also boosts member loyalty and confidence,” said David J. Serlo, President of PSCU Financial Services.
Plastics Coordinator at Aerospace Credit Union.
Greater Expectations. Greater Opportunities.
The 29th Member Forum was a meeting not to be missed. More than 425 attendees joined us in Phoenix to hear a variety of nationally recognized presenters and industry experts speak on the many opportunities that exist today within the financial services industry and how to take advantage of them. Participants also enjoyed the social and networking opportunities. Read on to learn the highlights from a few of the highly successful and educational sessions.
- Chip Filson, Callahan & Associates
Building membership and assets requires developing new markets or finding new ways to serve members and prospective members.
While credit union share growth is at a 10-year low, credit unions have more than $694 billion in assets. The industry’s success will depend upon credit unions’ ability to innovate, collaborate and add value to members. The advent of free wireless Internet access (wi-fi) will have great implications for financial institutions, especially by enabling them to serve those who are currently underserved.
- Howard Schmidt, R&H Security Consulting
Security is not an end, it’s a process that involves both technology and tactics.
Credit unions must assume responsibility for establishing security processes and procedures to protect members. Everyone is being tested by the continuous efforts of hackers, phishers and identity thieves—even small to mid-size credit unions. It’s important to remember that security procedures only work if the required actions are easy for members to perform. Continued member education is required so that members understand how to protect their account numbers, passwords/pin numbers and other critical financial information from would-be thieves.
- Catherine Graeber, Forrester Research
You can earn the loyalty of Gen Y by helping them compare financial products, and offering an honest recommendation based on each individual’s needs.
The best predictor of purchase intentions is consumer advocacy ratings, not satisfaction surveys. Advocacy is the perception that the institution is doing what’s best for the member and not just serving its own needs. This is good news for credit unions, since their advocacy rating is far ahead of any major bank. The only wrinkle is that each generation views advocacy differently. Credit unions have traditionally excelled at personal service, which earns high advocacy scores among members 40 and older. Now credit unions must focus on establishing product and operational excellence, which appeals to adults 18-28. Young adults value the clear explanation of products and services and expert help with comparison-shopping for financial services that meet their needs.
- Todd Brockman, Visa
Prepaid cards are an excellent vehicle to build
relationships with the unbanked/underserved
and Gen Y.
Prepaid cards can help credit unions better serve their members by:
1) Addressing the financial needs of the underserved and unbanked, most of whom do not have a checking account or a FICA score. Prepaid cards also deliver the
convenience and safety of plastic to those who may not qualify for a credit card.2) Build relationships with teens and young adults by
providing their first “plastic.”
- Michael Archer, MasterCard Advisors
Developing a credit card program for small businesses will pay off with increased member loyalty and high transaction volumes.
Small businesses continue to represent one of the great growth opportunities for credit cards, since only 7% of small business transactions are card-based. It’s also a very attractive market, since small businesses have twice the transaction volumes of individuals. Small businesses do have special needs including: central billing for multiple cards, desire for rewards points that can be accumulated in the principal account, spending restrictions for individual users and one line of credit across all cards. Contact Center service is a huge issue for small business owners, who often need after-hours support.
Conversion on the Horizon?
Count on CUAlways™ for Enhanced
Member Support
There is no better time to call upon CUAlways™ 24/7 member support than when you are going through a major conversion.
That’s the experience of Franklin Mint Federal Credit Union (FMFCU) of Broomall, Penn. The credit union was about to undergo a simultaneous conversion of its home banking, bill payment and web site providers. Initially, FMFCU was scheduled to begin using PSCU Financial Services’ CUAlways after the conversion. However, the credit union decided to implement the program ahead of schedule to address the expected increase in member inquiries and requests for service.
“We initially thought implementing CUAlways might overload our staff during this very busy time. But then we decided having the service would actually assist with the conversion. That proved to be an excellent decision for both our staff and our membership,” reports John Hargrove, FMFCU Vice President.
CUAlways allows credit unions to expand their call center hours to provide members with 24/7 coverage. The
service can be activated for overflow, after-hours or
emergency support.
Because of the structure of its previous contracts with home banking, bill payment, and web site providers, FMFCU needed to convert each of the services to the new provider at the same time.
“PSCU Financial Services agreed to assist us knowing that our conversion was less than 30 days away,” Hargrove explained. “The CUAlways team was able to coordinate and collect all the necessary information in a compressed timeframe. I was impressed at how efficient the process was from start to finish.”
During the conversion, the CUAlways team processed
overflow calls during regular business hours and also
handled after-hours calls. “The transition between their team and our internal team was seamless. As a result of this relationship, we were able to provide enhanced
assistance to our 15,000 home banking members during what could have been a very difficult time. Instead, we had a very successful conversion and we continue to be pleased with the quality of the CUAlways team’s performance,” Hargrove notes.
There is no better time to call upon CUAlways™ 24/7 member support than when you are going through a major conversion.That’s the experience of Franklin Mint Federal Credit Union (FMFCU) of Broomall, Penn. The credit union was about to undergo a simultaneous conversion of its home banking, bill payment and web site providers. Initially, FMFCU was scheduled to begin using PSCU Financial Services’ CUAlways after the conversion. However, the credit union decided to implement the program ahead of schedule to address the expected increase in member inquiries and requests for service.assistance to our 15,000 home banking members during what could have been a very difficult time. Instead, we had a very successful conversion and we continue to be pleased with the quality of the CUAlways team’s performance,” Hargrove notes.
Protecting Interchange
Despite the many benefits of electronic payments, some merchants have begun to challenge
interchange rates in the courts and are seeking government regulation of interchange fees. As a member of the Electronic Payments Coalition,
PSCU Financial Services represents credit unions interests in protecting consumer choice and
competition in payments through advocacy efforts aimed at government officials.
The aim of the Coalition is to educate policymakers on the value of the payment systems and to
reinforce public awareness of the many benefits provided by these systems to consumers and merchants – including convenience, speed, reliability and the security of transactions that these systems support worldwide.
PSCU Financial Services pledges to keep our members informed on the efforts that the Coalition is taking on their behalf to ensure the continued growth of the vast payment network that connects millions of consumers with millions of merchants each and every day.
Hungry For More?
We’re hosting the 2006 Member-Owner Meeting at the Aladdin Resort & Casino in Las Vegas on August 28–30. Topics will cover a wide range of issues including maximizing your debit, credit, small business, prepaid and bill payment solutions. Save the date. Detailed information will be
distributed soon.
Reward Bonuses key to successful Promotion
Reward bonuses, not interest rates, were the hub of South Carolina
Federal Credit Union’s recent
Platinum Visa card promotion. When the North Charleston-based credit union decided to energize its credit card program, Vice President of
Marketing, Scott Blue worked closely with PSCU Financial Services to design incentives that would boost both activation and usage rates.
Instead of low introductory interest rates, Blue decided to use CURewards points to attract attention. Cardholders earned 3,000 points for their first purchase, double points for external balance transfers and 5,000 points for using another credit union product for the first time, including car or mortgage loans and checking.
“Our Platinum card program was attractive, but we needed a way to generate excitement among our members,” said Blue. “Bonus CURewards points proved to be an excellent and cost effective way to motivate members to use the Platinum card and to try other credit union products as well.”
The promotion, which ran during the fourth quarter of 2005, exceeded all expectations. The credit union opened 1,521 new accounts. The majority—842 new accounts—represents existing members who did not have a credit union credit card, while 624 cards were opened as member upgrades.
The promotion also attracted 55 new credit union members.
These accountholders transferred $1.7 million from other institutions, doubling the credit union’s goal of $830,000. Outstanding balances rose by $6.5 million during the quarter, an impressive increase of 9.4 percent.
Investment expenses were minimal since 85 percent of the new accounts responded to a pre-approval letter. “We send out a pre-approval letter to qualified members every quarter. So it’s clear that offering bonus points and publicizing the CURewards program made the difference,” Blue explains.
The credit union also boosted activation rates by extending bonuses to inactive cardholders. “PSCU Financial Services identified several hundred inactive cardholders, and we also offered them 3,000 bonus points for a new purchase,” he said.
2006 CUREWARDS Sweepstakes
Loyalty programs build balances! Enroll in CURewards™ by July 14, 2006 and your cardholders will be eligible to participate in the CURewards Dream Big! Win Big! Sweepstakes. One lucky cardholder will be awarded 1 million points to fulfill their merchandise and travel dreams and nine others will win substantial prizes, too – just for using their CURewards credit union plastic October 1st through the end of the year.
Dream Big! Win Big! is the fourth annual CURewards Sweepstakes that PSCU Financial Services has underwritten as part of the company’s continuing commitment to help build profitable, successful credit and debit programs.
If your credit union is considering adding a rewards program—now is the time to act! Your Account Executive can prepare revenue modeling for your organization to see the impact of adding a loyalty program. Remember your credit union needs to enroll by July 14th to participate in the Sweepstakes that is sure to build enthusiasm for your program.
Be Prepared–We Are!
With the devastation of the 2005 natural disasters, Business Continuity Planning takes on heighten meaning as we head into the 2006 Hurricane Season that officially starts on June 1 and runs through November 30.
We pledge to keep you informed during an adverse situation via broadcast faxes, the Internet, and our toll-free Member Newsline (800-772-8639). Given permission, we can extend emergency credit line increases, increase the number of allowable card authorizations per day or offer skip a payment for any cardholders located in or traveling within the geographic areas that are potentially impacted.
While hurricane season may be top of mind for those living in coastal areas of the country, adverse situations can occur anywhere. Should the need arise due to a situation in your community, simply contact your Member Services
Representative and we’ll be able to quickly
implement any of the emergency
services required to assist
your cardholders.
