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Like many credit unions around the country, is your credit union struggling to cut operating expenses and increase income? The truth is there are indeed many mandatory operations, that need to be in place, that are part of overhead but there are certain things that do not need to be part of that operating cost. One of those is paper statements. With today’s digital first movement, there is a large emphasis on electronic statements over physical paper copies. There are many reasons why members are encouraged to switch to electronic statements. Some of the top reasons include: faster delivery on demand, ease of viewing your statements on any device and cutting the use of paper to be more environmentally friendly. These reasons along with encouragement from the credit union, are why more people are choosing to opt in to a digital delivery method for their statements. This is the case for two Sharetec credit unions that are using eStatements to cut costs and increase income. These credit unions offer free eStatements but do incur a fee if a member is wanting physical paper copies of the statements.

Brian Blaszak, President of Synergy Partners Credit Union, in Chicago, IL, remarks, “Advertising our $2.00 per statement fee in our quarterly newsletter and other member documents to get members to sign up for eStatements has been very successful. This has brought us a decent amount of monthly savings from not spending on postage and paper, as well as the additional earned income. Roughly a $25,000 increase in income this year.”

With the success of eStatements, more credit unions are adopting this strategy with the understanding that members, especially the younger demographic, will choose to receive electronic records as most banking interactions, today, are done digitally from a phone, tablet or a computer.

Thom Ewen, President of Illinois State Credit Union, in Normal, IL, 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 lowering the credit union costs,” comments Matt Isger, Regional Director for Sharetec.

 To read the full case study, click here.