Credit Union 1 Grows aTM deposits 68% through high-tech, high-touch strategy
Credit Union 1 ($935 million, 14 branches) serves a far-flung member base, spanning the entire state of Alaska. In order to broaden the accessibility to key financial services around the clock, the credit union launched a comprehensive ATM replacement project in December 2012, installing 7 Check 21-enabled ATMs from Diebold paired with ATM check capture from Bluepoint Solutions. This addition allows the credit union to meet members where and when they want to bank, enabling increased member engagement through the use of technology. Use of the ATM channel has increased significantly, with deposit growth at 68% between July 2013 and December 2014.
According to a 2014 Capgemini study, ATMs are the second most commonly used banking channel, while the traditional branch channel continues to decline. Image-enabled ATMs are a critical part of Credit Union 1’s long-term strategy to meet consumer demand for greater convenience and self-service options. Mercator Advisory Group, in their 2014 ATM Market Benchmark Report, predicts the number of ATMs worldwide to increase over 25% by the year 2017.
Bluepoint Solutions recently sat down with Rachel Langtry, SVP of Administration and Communications of Credit Union 1, to discuss the credit union’s success with remote deposit capture through image-enabled ATMs.
Q + A:
Bluepoint: Why was it so important for your and for your members to add remote deposit capture capabilities to your ATM network?
Langtry: Because our membership is spread across such a vast and often remote area, it was very important for us to offer ATM check capture services for members unable to get to a branch during operating hours.
Bluepoint: How did you select Bluepoint’s ImagePoint ATM check capture solution?
Langtry: After a thorough vendor review process between several providers, our internal project team deemed Bluepoint’s ImagePoint ATM check capture as the solution best equipped to handle our projected growth as we add remote deposit capture points in the future. We also chose Bluepoint due to its accelerated time to market capabilities, as well as the company’s ability to integrate multiple RDC capture points that are supported by a single back-office cashletter system. Bluepoint helped us smoothly integrate check capture into our updated ATMs across our network.
Bluepoint: Self-service technology can be challenging to introduce successfully. How did Credit Union 1 help members feel comfortable using the new ATM service?
Langtry: When we first announced the addition of check capture at the ATMs we had a lot of members who were uncomfortable with advanced technology and a little distrusting with something new. We have taken a number of measures to promote the ATM service including articles in our newsletter, posts on our social media sites and on our website, as well as someone on-site in the branches to do an “electronic services educational day” that involves showing members how to use the new services step-by-step and being available to respond to their questions or concerns on the spot. We also have a branch at the local high school that we utilize for financial education with an ATM to accept deposits.
Bluepoint: What kind of adoption rates and deposit volume are you seeing now that the service has been in place for a couple of years?
Langtry: After the initial launch of the service members began to take advantage of the added convenience factor and we saw an uptick in deposits made through the ATM channel- since this time last year we’ve had a 30% increase. Over the past 12 months we’ve received over 3,800 deposits totaling $1.4 million through the ATM channel. The average monthly total of deposits is over 317 at around $380. We’ve seen that the time of day or the season doesn’t really affect when members use the service, it’s been fairly consistent so far.
Bluepoint: What effects has the solution had on branch and/or call center traffic? Was decreasing in-person interactions part of your plan?
Langtry: When we sought to add this service, our goal was not necessarily to reduce branch and call center traffic, but it was rather to increase our arsenal of available options for members to interact with us. Our focus is on high-tech and high-touch as we meet our members wherever they want to do business through any channel. By making sure we have every option available for them to choose from, we will increase member engagement and bolster our relationships, especially with the younger generation.
Bluepoint: Any measurable increase in membership or engagement?
Langtry: Yes, we have seen increases in membership which we’re attributing to the wide range of member conveniences we’ve rolled out recently, of which ATM check deposits was a critical component. To us, it’s about having the right balance of high-tech access for our younger member demographic, as well as high-touch options for our more seasoned members. Whether we are implementing cutting edge products, ensuring accurate and timely transactions, or taking an active role in supporting our community, our mission is to help members achieve their financial goals by focusing on delivering excellent service and value.