MT. PROSPECT, IL (FEBRUARY 12, 2013) – Regardless of asset size, technology is a critical part of any credit union’s (CU) business strategy, which is why many CUs have committed to increasing their technology spending by 10 percent or more this year.1 Cummins Allison, the leading innovator and provider of coin, currency and check handling solutions, highlights where CUs can allocate financial resources to ensure a maximum return on investment (ROI).
Alternative Electronic Deposit Options
Although Remote Deposit Capture (RDC) has existed for nearly eight years, many members remain hesitant to convert; only five percent of business accounts have readily adopted RDC. This leaves CUs with untapped capacity and significant potential for growth. To maintain and grow a highly profitable base of commercial depositors, CUs can offer an alternative to RDC that satisfies more of their members’ needs.
Image Cash Letter (ICL) deposits offer a more streamlined process that does not sacrifice quality for speed. New hardware/software solutions can efficiently scan and image deposit items and create/send the ICL deposit to the credit union. This makes the move to electronic deposit processing viable for even the most check-intensive businesses, while simplifying the effort for all parties. Credit unions benefit from accepting ICLs in two ways: (1) the CU is able to offer a service to members that many banks do not, creating a competitive advantage, and (2) CUs can offer a new, high-speed end-to-end electronic treasury solution for their members.
Create a Unique Experience for Members
Competition for members continues to intensify, which is why CUs must embrace technology as a strategy that allows them to provide a unique member experience. Offering a self-service coin counting option in the lobby means that members no longer have to count and wrap their coins, can avoid teller lines while holding heavy coin containers, and have a faster, more meaningful exchange with the teller when they cash in their coin redemption receipt.
Self-service coin machines are a service offering members truly want. A recent study revealed that 80 percent of those surveyed reported that they would switch from a teller to a self-service coin machine and that they believe their satisfaction would measurably increase as a result, with many indicating they would use the machine “all the time”.2
Ownership of a self-service coin machine is not only a point of differentiation for a CU; it can also drive traffic into the branch and result in new accounts. Self-service coin counting is also a value-added service to a CU’s commercial offering. The machines are an excellent way to more efficiently handle regular coin deposits, offering high-volume sorting in the lobby so that commercial depositors can enjoy the same high speed processing provided by vaults and armored carriers.
Reduce Labor and Processing Costs
Outdated currency scanning and counting technology can slow down simple tasks – and stymie productivity – in the highest volume areas and at the teller window. Labor and time savings can be achieved by investing in a single device that has multiple capabilities: processing currency and checks. While maximizing the device’s footprint, CUs can make more productive use of employees’ time – which can often lead to more high-value interactions with members.
For example, the most advanced cash and check processing equipment can deliver quantifiable savings, such as: 40 percent faster currency processing; 222 percent faster check processing; reduced errors thanks to a simplified deposit interface with fewer steps; decreased ATM deposit processing time by 75 percent or more; and decreased or eliminated time spent rescanning check images.
As CUs begin to allocate more funds to technology spending, it’s imperative that they evaluate where these dollars will have the most impact. Technology solutions that improve internal operations, drive traffic and improve the member experience should be a high priority.
For more information how to select the check, currency and coin processing solutions that can deliver a measurable ROI to your CU, visit: www.cumminsallison.com.
1 3 Strategies Shaping Technology Budgets in 2013: Callahan & Associates, January 14, 2013
2 Assessing the Opportunities for SSC Machines in the Financial Segment: BranMark Strategy Group, 2011
About Cummins Allison
Cummins Allison is a global leader in developing technologies which count, sort and authenticate currency. The U.S.-based company has a 125-year heritage of leadership in technology and product innovation and currently serves the majority of financial institutions worldwide, as well as leading organizations in retail, casinos, law enforcement and government. The company holds more than 350 U.S. patents and has ongoing research and development (R&D) investments double the industry average. Cummins Allison is headquartered near Chicago, IL with R&D centers near San Diego, CA and Philadelphia, PA and wholly owned subsidiaries in Canada, the United Kingdom, Ireland, Germany and France. The company also has an extensive sales and service network with more than 50 offices in North America and is represented in over 70 countries. For more information, visit www.cumminsallison.com