The end of the postage

An Overview

• Your credit union’s printing needs– Notices– Statements– Announcements

• How much does it all cost? – Postage and Printing– Minimizing your costs without sacrificing service

• Get the facts!

NCUA RULING

NCUA Says CUs Need Not Send NoticeFor Every Insufficient Funds Charge

ALEXANDRIA, Va. – NCUA said federal credit unions are notrequired to send a notice each time a member incurs aninsufficient funds, or overdraft fee, but the charge must berecorded in the subsequent periodic statement.

 However, while not required to do so, NCUA guidance states it isa “best practice” to notify members promptly, the agency said ina legal opinion letter posted last week and issued to High PlainsFCU, in Clovis, N.M.

What you’re printing

• Statements

• Notices

• Announcements

• How much does all that cost?

Notices

• Ad Hoc

• Timely?– When is your member getting the notice?– How useful is it when it comes?

• Cost?– Time and postage

Letters and Info Pieces

• Messages from the CU

• Just as costly as other mail sent, even in plain envelopes

What does all that cost?

Statements Cost of Statements

(@ $.70 per)

Notices Cost of Notices

(@ $.60 per)

20,000 $14,000 5,000 $3,000

40,000 $28,000 10,000 $6,000

80,000 $56,000 20,000 $12,000

What does all that cost?

Ouch! My budget!

What’s making statements costlier to print?

1.Too much transaction information2.High transaction volume brought on by debit cards3.Printing and postage being inelastic means prices only go up year-to-year4.More transactions = more ink and more paper = more money

Ouch! My budget!

From WSJ.com

Look at all that debit card usage!

Ouch! My budget!

While we’re on the topic of postage

Postage is going up…and up and up! Now at $.44, its highest rate in history

Now at $.44, its highest rate in history

In 20 years, postage has increased 300%.

Extrapolated, that means postage could be

as high as $.60 in the next ten years.

Can you afford that?

In 20 years, postage has increased 300%.

Extrapolated, that means postage could be

as high as $.60 in the next ten years.

Can you afford that?

Ouch! My budget!

What’s making notices costlier to send?

1.Sending a whole notification letter each time gets costly2.Many notices are unnecessary or not required by regulation

From CUNA NewsNow:

Disclosures of NSF and overdraft fees are generally governed by NCUA’s Truth in Savings Act rule. NCUA’s TISA rule requires periodic statements to include a disclosure of any fees, including those for NSFs and overdrafts, debited from an account during the statement period. An FCU must itemize the fees by type and dollar amount, said NCUA. A recent amendment to NCUA’s TISA rule also requires the disclosure of the total dollar amount of overdraft fees charged to an account in both the statement period and the calendar year to date. The total dollar amount includes per item fee, interest charges, daily or periodic fees or fees charged for maintaining the account in an overdraft status.

Here come the facts

BEST PRACTICE: You can be compliant AND make eStatements the default at your CU

1.Electronic only accounts2.Make default for new accounts, new online members3.Set default and confirm opt-in

But you’re wondering – “If we make eStatements the default, how many people will opt-out?”

Here come the factsPercent Stay-With-eStatements

89.33%

96.46%

98.76%98.25%

95.01%

84.00%

86.00%

88.00%

90.00%

92.00%

94.00%

96.00%

98.00%

100.00%

Capital Trust Heritage Valley Fort Community Alcoa Tenn Apple

These are retention rates, or the percentage of members who chose to stay with eStatements

These are retention rates, or the percentage of members who chose to stay with eStatements

The Customer Communication Center

This single sign-on, highly-secure online application can provide your members with eStatements, online documents, notices and important information chosen by you.

This single sign-on, highly-secure online application can provide your members with eStatements, online documents, notices and important information chosen by you.

Here come the facts

BEST PRACTICE: You can get away with a “Top 5” notice strategy

1.Non Sufficient Funds(ATM, Share Draft/Checking, ACH)2.Notice of Transfer(ATM, Share Draft/Checking, ACH)3.Past Due Payments (5 day, 15 day, 30 day)4.Address Change confirmation5.Certificate Maturity

How much more could you need?

Here come the facts

BEST PRACTICES: Turn the rest of your notices into eNotices and postcards

•eNotices can go out days earlier, or immediately after NSF flag raised or low balance alert comes through

•Postcards are printed in partnership with DigitalMailer print partners around the country. They’re less postage, and take less time to put together than letters and envelopes.

Here come the factsTurn the rest of your notices into

eNotices and postcards

Certificate of Maturitythrough DigitalMailer CCC

Certificate of Maturitythrough DigitalMailer CCC

Notice of Insufficient Fundsthrough DigitalMailer CCC Notice of Insufficient Fundsthrough DigitalMailer CCC

Here come the factsNotice PostcardsNSF notice, complete with

total due and overdraft fee notification

NSF notice, complete with total due and overdraft fee notification

Card addressed, with postage paid, by the printerCard addressed, with postage paid, by the printer

Questionnaire attached to back to handle change of address, further notices and overdraft protection opt-ins

Questionnaire attached to back to handle change of address, further notices and overdraft protection opt-ins

Here come the factsNotice Postcards

Cards are folded with perforated openings to seal information inside

Cards are folded with perforated openings to seal information inside

Rate change notificationRate change notification

•Branded

•Packed with contact information

•Simple!

•Branded

•Packed with contact information

•Simple!

• Leading digital communication provider to CU industry since 2000 • Safe-listed on 4.3 million servers worldwide

• CUSO with over 170 CU clients from $35M to $1.7B with 4.0 million members

• Over 15 million eStatements notifications delivered

• Email messaging system since 2002

• Over 15.5 million marketing emails delivered since 2002

Go to www.digitalmailer.com/notices.html for more info and pricing.Go to www.digitalmailer.com/notices.html for more info and pricing.

Ron DalyPresident/CEO866-994-4900 ext. 102rdaly@digitalmailer.com

Ron DalyPresident/CEO866-994-4900 ext. 102rdaly@digitalmailer.com