By Troy Lindsey, Manager – Sales Support
Credit union management teams are analyzing every operation and expense these days for relevance in a pandemic-influenced environment. One useful tactic for maximizing efficiency in operations is consolidation or centralization of similar functions under one umbrella. This approach offers several potential benefits, such as streamlined administration, enhanced security and increased economies of scale.
One area where credit unions can truly improve their operational efficiency is consolidation of all their deposit channels under a single administrative hub. Credit unions often add services one at a time over the years based on member demand and available budget dollars. This can result in managing multiple deposit platforms, each of which carries with it a unique set of requirements and procedures. The challenge with multiple platforms is obtaining a big picture view of how your individual deposit channels are performing and where you should be focusing your attention for the future.
It's like owning a car fitted with four different size wheels. It may roll from point A to point B, but does it offer the safest way to travel, deliver the best mileage, and provide the most efficient maintenance options year after year?
On the other hand, centralizing all your deposits within one administrative hub creates a “single source of truth,” where all related data is housed together. Here’s how centralization can impact operations:
- Streamlined administration.
When deposits are managed within a single hub, credit unions can view all deposit activity within one summary report that includes standardized data. This speeds deposit research and reconciliation efforts and eliminates redundant searches in multiple systems. A single platform also simplifies adjustments, as they are managed through one point of contact, reducing staff hours associated with that task.
Deposit returns flow through one system, as well, and deposit images are maintained and retrieved from a single archive. And from an accounting standpoint, one platform for all deposits makes month-end and year-end reconciliation an easy, straightforward process.
- Enhanced security.
Another advantage of consolidating deposit channels within a single hub is the opportunity to strengthen security measures. With all activity focused in one platform, the credit union minimizes online staff connections and, thereby, its security vulnerability. Fewer systems are needed to perform deposit-related duties, which means login credentials and user maintenance associated with staff working within the multiple systems are reduced.
Fraud and risk analysis can also be focused on one source, rather than multiple platforms, enabling experts to evaluate channels in aggregate. Due diligence efforts are limited to one vendor, reducing staff time spent gathering “intelligence” and ensuring compliance. And perhaps one of the most important benefits of a single hub for all deposit activity is the ability to monitor across all channels for duplicate deposits. A mobile deposit that is later re-presented for deposit at the branch or at an ATM, for example – whether it is intentional fraud or an accidental redeposit by your member – can be stopped before funds are withdrawn from the credit union account.
- Increased economies of scale.
In the current uncertain economic environment, every dollar counts. Centralizing services, like deposit channels, can bring savings to your bottom line. For example, reducing the number of vendors you work with could reduce service fees paid. Additionally, by aggregating all deposit credits to a single account, the credit union minimizes funds transfer expenses and maximizes interest on the funds in that account.
Catalyst Corporate’s remote deposit capture platform, called TranzCapture, offers a single administrative hub for Branch, Teller, ATM/ITM/Intelligent Kiosk, Mobile and Business Capture deposit services. Comprehensive yet flexible, TranzCapture aligns all your deposit channels, affording credit unions streamlined administration, enhanced security and increased economies of scale.
To find out more about TranzCapture, or to discuss your credit union’s deposit needs, contact us today.