KPMG Study Shows Outsourcing Call Centers Can Reduce Expenses While Improving Member Service

St. Petersburg, FL, June 17, 2009 – A study by KPMG analyzed six credit unions’ transition to PSCU Financial Services’ call center services and the subsequent business impact. According to the report, extending service hours to 24/7 not only reduced abandon rates while improving member satisfaction—it also reduced expenses. The credit unions outsourced call center operations to PSCU Financial Services’ Total Member Care for various reasons, including a desire for business continuity, increased member service levels and cost reduction.

The KPMG study reports marked improvements in efficiency and reduced costs. Overall, abandon rates dropped from up to 15% to an average of 3%. Speed of answer improved from 2-4 minutes to just 30-40 seconds. And single call resolution rates jumped to 86-96%. One small credit union reduced cost per call by 71% while experiencing an increase in call volumes due to longer hours of operation. One large credit union that outsourced after-hours support realized savings of $430,000 (83%) when compared to using internal staff for after-hours support.

Participating credit unions noted the importance of call-scripting initiatives for addressing a wider range of customer concerns in a fast and accurate manner. Additionally, the studies found members consistently take advantage of around-the-clock service and appreciate the added convenience.

PSCU Financial Services recommends that credit unions outsource after-hours operations to better serve their members—and also consider outsourcing overflow calls during peak periods. “The real issue is delivering excellent service regardless of when the call comes in,” said David J. Serlo, President, PSCU Financial Services. “We recommend partnering with a professional Call Center provider that can answer member calls after business hours. We also recommend that credit unions allow overflow calls to automatically be diverted to an outside Contact Center. As your own staff becomes available, member calls will come back in-house. This technology is available and it can ensure that your members receive the same high level of service every time they call.”

Serlo adds that building a relationship with an outside Call Center provider also enables the credit union to rely upon this partner for disaster and emergency backup support. Call Centers also present an ideal opportunity to cross sell services, according to Serlo. “The Call Center is a primary point of contact with members. When a representative is able to answer a member’s question or resolve an issue, members are often very receptive to discussing other needs that may lead to new business. The first step is providing good service, but the next step should be cross selling other financial products. Any Contact Center being considered for outsourcing should also be able to provide cross selling as well as member service.” PSCU Financial Services’ Contact Centers serve 1,300 credit unions and handle 16 million calls a year.

About PSCU Financial Services

PSCU Financial Services offers 24/7 member support through four Contact Centers: its Eastern operations center in St. Petersburg, Fla.; a Western operations center based in Phoenix, Ariz.; and two call centers in Detroit, Mich. These Contact Centers perform member servicing and new member acquisition, cross-selling and automated lending solutions as well as support for debit/credit/prepaid cardholders and online bill payment subscribers.

Established in 1977, the company provides a broad array of cost-effective, high quality financial services that include credit, debit, ATM, prepaid, bill payment and contact center solutions. PSCU Financial Services uniquely offers its members a full range of processing options, any combination from full service to in-house pass through processing for credit, debit and ATM transactions. As a leader in the credit union movement, the company offers gateway access to national and regional networks. It also provides full function ATM terminal driving services. For more information, visit PSCU Financial Services’ website at www.pscufs.com.

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