Lindsey McMillen is a 32-year-old Business Systems Analyst at Y-12 Federal Credit Union ($1B) in Oak Ridge, Tennessee, United States.
Risk Based Check Cashing
Providing immediate credit for mobile deposit items and consistency for the entire credit union.
During the last year, my Credit Union has been heavily focused on increasing the functionality and usage of the mobile banking channel. We knew we needed to improve our mobile app to make it a user-friendly and convenient experience for our members, particularly when it came to mobile deposits. The process at the time included a back office employee reviewing each individual item and account before releasing the funds. This was a tedious and slow process for the member, especially if their deposit wasn’t made during business hours.
We came up with a list of important items to consider when deciding to cash or hold a check. Using those characteristics, we developed a matrix that allows us to assign each account with a “risk score”. That score indicates the amount we can provide each member in immediate funds. The program runs every night during processing and reassigns their score based on their account standing at the end of the day. To further reduce the manual efforts around mobile deposit, we implemented TrueCheck fraud testing and added a restrictive endorsement qualification that has to be met before a member’s check is allowed to be processed.
Since we implemented Risk Based Check Cashing, we have seen an increase of 150% in mobile deposit transactions in just 8 months. We now use the same matrix for checks taken in the branches and ITMs as well, which is helping to create consistency amongst all of our channels of banking. It’s been a definite Win-Win!