Consumer/Business Remote-Deposit Program Can Provide a Competitive Edge

George Dow
December 9, 2008 | COMMENTS

Solidarity Community Federal Credit Union knew it had an effective product with its remote-deposit program for credit union business and consumer members, which it calls DeposZip. It was simple. It was convenient. And no one else in town offered it. The challenge was getting the word out to members.

Filling a Marketing Niche

“By opening up remote deposit to both consumers and small businesses, we've been able to define a niche that our banking competitors don't have,” said Dan Schoenherr, executive vice president of the $154-millioncredit union based in Kokomo, Indiana. “We always look for innovative ways to make it easier for Solidarity members to use our services. This program fits the bill.”

Schoenherr said the service provides flexibility because both business and consumer credit union members can make deposits using common desktop scanners. “Our program serves consumers and small businesses from the same platform, a huge benefit because we didn't have to buy and implement separate consumer and business deposit programs,” he said. “Most banking programs designed for business or merchant capture are very costly. They aren't looking to serve the smaller businesses primarily served by credit unions.”

Solidarity members access the new deposit service through their online banking program. They simply log on, select the “Make a Deposit” tab, scan their checks, and push “Send.” On-screen deposit histories and automated e-mail messages confirm their deposits. Another perk: The service supports both single- and multi-check deposits.

Because Solidarity's growth strategy isn't focused on building new branches, Schoenherr says remote deposit offers a cost-effective way to bring the credit union closer to its members. “We can serve members from anywhere,” he said. “They don't need to be close to a branch or ATM, or worry about deposits getting lost in the mail.”

At Solidarity, which launched its remote-deposit service just five months ago, more than 230 members have signed up, and some $686,000 in total member deposits have been electronically transmitted.

Promoting via New Media

According to Diana Tenbrook, Solidarity's vice president of marketing, the credit union has created a complete strategy to spread the word, including e-mail alerts, chamber of commerce events, direct mail, and member drawings. But one tactic has been especially effective in reaching the business community: a YouTube-style member video.

“It's really true that pictures speak louder than words,” said Tenbrook. “This was our primary motivation for creating the video — so members could actually see how great the deposit program is.”

In the video, Solidarity member Amy Black, owner of Meal Thyme Solutions, a meal-assembly business for time-pressed consumers, discusses the convenience and ease of using the service for her business checking.

Since the release of the video, which is posted on the Solidarity website, Black says she can't go the mall without being recognized. “It's provided tremendous visibility to my company,” She said.

Solidarity says it has plans to feature more members in online promotions for the service. “This is an approach we haven't done before, and the campaign is definitely generating interest among our members,” Tenbrook said. “We're always working to dispel the myth that credit unions aren't convenient. Offering members the ability to make deposits on their timetable on their own computers goes a long way to promote that.”

DeposZip was developed by EasCorp, a corporate credit union based in Massachusetts. For more information, contact George Dow at 800-428-1144 or gdow@eascorp.org.