October 19, 2022
Let’s be real. There is a constant struggle to cut costs and increase income. This is the case for every single organization not just credit unions. If we interview 10 companies, in 10 different industries, I would bet all 10 would agree that this is a constant focus of the leaders of the organization. Let’s focus on credit unions. Increasing efficiency, cutting costs, cutting extra labor, and increasing overall CU income, means growth for the organization and more options and services available to members. Finding ways to do these things, however, is not always easy, especially if you don’t have the right partners in place.
Speaking of the right partners, here is how Sharetec has helped a couple of credit unions achieve higher income while cutting costs. Synergy Partners CU and Illinois State CU both implemented a paper statement fee to encourage their members to sign up for eStatements. Both CUs faced the same problem. Many members don’t look at the statements they receive, but that still costs the credit union about $0.75 per statement. So, with Sharetec’s eStatements, both CUs offered easy digital statements for free and charged a small fee if the member chooses to continue receiving paper statements.
There are many benefits to receiving eStatements. Some of the highlights include:
Some of the results included:
Thom Ewen, President of Illinois State Credit Union also has great success with charging members a small $2.00 fee per statement when sending through the mail. “Not only has our postage and paper printing expenses dropped drastically, but we are earning over $2,000 per month in additional income. We do give exceptions for hardships, mostly when members complain adamantly, as well as excluding seniors.”
“It is very common to receive electronic statements and bills. These credit unions are creating the paper statement fee in order to change behavior. Offering a free eStatement helps most members switch off paper and the strategy has shown to be very successful in offering a better solution while lower the credit union costs,” comments Matt Isger, Regional Director for Sharetec.