Franklin Mint Federal Credit Union, a provider of financial products and services since 1970, serves the greater Philadelphia region and beyond. With over $1 billion in assets, FMFCU has 110,000 members, 2,500 partner organizations and 23 branches.
To stay dedicated to the mission of speed, service and convenience, FMFCU needed to review their applicant screening options to make better-informed decisions and provide clear direction for front-line staff.
Reviewing applications poses a challenge
The credit union needed to make sure its decision-making data was current, relevant and descriptive. In addition, it had to quickly achieve the appropriate risk threshold so good applicants won't be turned away while transitioning to a new screening service. FMFCU's existing provider was going to transition the credit union to an enhanced version of its service, so it was a good time for FMFCU to see what Deluxe, which was already a partner, could offer.
The credit union found Deluxe Detect, and the lower price assured FMFCU that it was the right move. Execs at FMFCU were most impressed by the enhanced reminder prompts for the branch staff — such as FCRA reminders and Adverse Action.
Enjoying the benefits of partnership
Deluxe interviewed Gretchen Scheidly and Kelly Chaudrue from FMFCU to learn more about their experience working with Deluxe. Scheidly said about the decision-making data, "The records are current. That’s a huge plus. Records from five years ago aren't relevant, and that’s what we were getting from our previous provider."
Chaudrue added, "From a back-office perspective, I’m seeing more detail in the derogatory hits coming back. More than just a limited set of reason codes, there are explanation fields that institution s can use when they input data. This really helps! I can see dollar amounts and whether a record is paid or unpaid. This makes a difference because we are willing to accept history at a certain dollar threshold if the record is past a certain time frame and has been paid and cleared."
FMFCU is now able to avoid a complicated service transition by accessing applicant screening through Deluxe OrderPro®, FMFCU’s existing web portal for ordering Deluxe checks. It's also able to use Deluxe Detect® to gain access to the timely data from nation’s largest financial institutions, configurable decision logic and action responses that FMFCU was seeking.
Ending with impact
The quality of data has affected the number of new members FMFCU accepts. Scheidly said, "We are better able to accept deserving applicants because we have current information. Also, Deluxe Detect has the configurable logic that lets us stretch our decision parameters and risk tolerance as our business objectives change.
Chaudrue said, "The more users, the more powerful the database. We have some major national players using it in our market area. A negative record is becoming a motivator for offenders to pay their old debts. Deluxe Detect has become a tool to get charge-off dollars back, allowing the consumer to open a new account with us, or another institution."
As for communication with applicants, the branch staff is now clear about what to do and say when they cannot immediately open an account. The applicants appreciate this level of knowledge.
Scheidly mentioned fraud control: "Deluxe Detect gives us what we want to know about consumer behavior in today’s environment versus older records we were getting from the competitor’s database. Frankly, in addition to new account and account-takeover fraud, our industry is also dealing with increases in ACH fraud, wire fraud, RDC fraud and P2P fraud. There will never be a 100-percent solution to protect us from everything but we feel we are in a better position using Deluxe. "
In all, FMFCU enjoys:
A reduction in write-offs: Former members are paying their debts to clear their record from the Deluxe Detect database
Fewer false-positive results and more-informed back-office investigations
The ability to hit new-member targets with quickly configurable decision logic
The future looks bright for FMFCU's mission of speed, service and convenience. Its use of better data and decision making has already led to clearer direction and communication with applicants.
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