If you have followed the progress of reward checking accounts the past few years, you might believe they are only for credit unions which seemingly have super powers or at least a red cape. There are several providers of reward checking with worthy ideas, however checking accounts have been historically simple and complexity doesn’t need to be part of your program today. Credit union checking accounts are driven by core systems, and a credit union core processing system should provide the basic tools to entice your members to view your credit union as their primary financial institution.
The simple truth is, in order to offer reward checking you don’t need to be faster than a speeding bullet, more powerful than a locomotive, or be able to leap tall buildings in a single bound. Instead, you just need a smarter core system. Why create a revenue stream for a 3rd party when you can administer a reward checking program from within your credit union?
Today’s credit union core processing systems have the data necessary to offer reward checking, so they should also provide the logic to drive revenue and build member loyalty. Advanced core systems can differentiate between signature and PIN based debit transactions, recognize direct deposits and include deposit amount minimums, count automatic loan payments and identify specific loan types (such as a credit card). In addition, credit union core systems should also provide incentives for money saving services like eStatements, mobile banking & internet banking, and counting the number of monthly bill-pay items, all while providing automation of program enrollment and reporting.
Just like being rewarded for eating at a restaurant or shopping at a grocery store, your members love to see the things they do every day turn into real benefits. Credit unions should be able to offer these benefits and increase non-interest income without making a call to the Man of Steel.
Learn more about driving reward checking through your core system.
