Patelco Credit Union($5.5B, Pleasanton, CA) is using a homegrown tier system for check holds to improve the member experience and reduce calls for help.
CU QUICK FACTS
Patelco Credit Union
Data as of 12.31.16
HQ: Pleasanton, CA
12-MO SHARE GROWTH: 16.4%
12-MO LOAN GROWTH: 12.7%
Called Co-Relate, the system uses relationship scoring to create five levels of immediate funds availability to members presenting checks in a branch.
The tiers range from $5,000 to $50,000, and each month Patelco refreshes each member’s tier level through its core processing system. This allows the California credit union to account for changes such as newly delinquent loans or newly adopted products and services.
Co-Relate officially went live in December 2015 and since then has reduced member phone calls to the contact center by 20% to 25%, says Lani Apolonio, Patelco’s vice president of operations.ContentMiddleAd
It also has helped us provide a much more consistent member experience, the 37-year Patelco employee says. It takes away some of the judgment calls, so we don’t have members getting immediate funds at one branch and then not at another.
Co-Relate tiers apply not only to checks members present at Patelco’s 36 branches but also to checks members are depositing anywhere in the country through the CO-OP shared branching network.
Lani Apolonio, VP of Operations, Patelco Credit Union
We wanted to ensure equitable treatment to members no matter where they are and give them predictable access to their funds, Apolonio says. That helps them better control their finances and, we think, deepen their relationship with us as their primary financial institution.
The Co-Relate system is the work of a committee comprising representatives of different business units at Patelco who came together to find a way to ensure some cash availability for any check that passed routine inspection at the teller window.
Members whose checks pass inspection receive cash availability based on relationship factors such as the number of deposit products and loans they have, how active their checking accounts have been, and how long they have been a member.
Checks that don’t pass inspection at the teller window are still subject to a two-day to four-day hold. And checks submitted via mobile deposit follow a different set of risk rules.
Depending on the image being presented, a check might end up on review, and certain dollar amounts automatically go to risk review, Apolonio says. If we have reason to believe a check will not pay, we delay it and email the member immediately.
Unlock Your Potential
Like what you’re learning? Callahan’s Media Suite subscription provides even deeper insight to help credit unions thrive with enhanced access to CreditUnions.com and industry-specific print publications.