$100K
in Annual Payment Processing Costs Eliminated
Increased
Monthly Adoption of Online Payments
High call volume, inconvenient payment options, and significant operational costs are just some of the challenges that prompted Horizon Credit Union to select an electronic bill presentment and payment (EBPP) solution. Learn why Horizon chose Orbipay EBPP and the benefits that members, indirect loan customers, and staff experienced as a result.
Background
Horizon Credit Union is a member-owned, not-for-profit financial institution that operates 20 branches in three states. The Credit Union serves anyone who lives and works in the state of Washington, plus select counties in Idaho and Montana.
Horizon’s mission is simple, “Your path. Our purpose.” Its goal is to meet members’ financial needs by offering useful, competitive products while delivering high quality service. To learn more about Horizon, please visit www.hzcu.org
Overview
Challenge
Horizon’s previous solution didn’t offer an online payment option for its members and indirect loan customers. Most payments were made via phone calls and paper checks, resulting in high internal costs for the Credit Union.
Solution
Orbipay EBPP decreased the volume of incoming mail, reduced expenses, and freed up the resource in Collections who was previously fielding phone payments. Horizon’s members now have a convenient way to make payments 24/7 using the payment methods and billing options of their choice.
Results
Horizon was previously spending approximately $100,000 per year to accept and process payments. When the Credit Union implemented Orbipay EBPP, it eliminated a significant expense that eventually led to a monthly credit due to revenue sharing.
Business Challenge
Horizon’s previous solution was very limited and didn’t offer an online payment option. The Credit Union serves a large geographical area, with many members living in remote locations. There can be significant distances between branch locations, making online and mobile banking solutions a must for its members.
Due to this lack of payment options, members and indirect loan customers would often call to make phone payments. However, Collections was the only department that was equipped to take phone payments, specifically for past due loans. Eventually, anyone who was calling to make a payment was sent to Collections. One employee fielded these calls, which totaled approximately 1,000 payments per month.
In addition, many members and indirect loan customers who didn’t have the option to pay online were mailing in paper checks. Horizon needed a solution that would free up employees’ time while cutting the internal costs associated with the high volume of calls and paper checks it was receiving.
How Orbipay EBPP Helped
Horizon wanted to offer the ability to make online payments via bank accounts and debit cards, while also providing options for one-time and automatic payments. Orbipay EBPP was ultimately selected for its ability to reduce costs, free up staff, provide a self-directed option for making digital payments, and reduce the volume of mailed payments. Horizon’s members now have a convenient way to make payments 24/7 using the payment methods and billing options of their choice.
For the Credit Union, Orbipay EBPP is yet another service it can provide that’s convenient, always available, and facilitates a seamless experience. The solution has decreased the volume of incoming mail, reduced expenses, and freed up the resource in Collections. In addition, Orbipay EBPP facilitates bill payments from indirect customers that don’t have an existing account relationship with the Credit Union.
Before and After
Implementing Orbipay EBPP freed up Horizon’s resource in Collections, who was previously spending three-quarters of their time taking payments-related calls. Kathy Conway, Director of Payment Processing at Horizon Credit Union, explains, “Reducing that call volume was a big win for us.” In addition, the Credit Union had previously been absorbing the costs of accepting debit card payments which changed after the introduction of Orbipay EBPP. Since its implementation, there has been an increase in the use of online payments every single month.
Results
Horizon was previously spending approximately $100,000 per year to accept and process payments. And these were just the hard costs, not including employee time. When the Credit Union implemented Orbipay EBPP and started accepting online payments, it eliminated a significant expense that eventually led to a monthly credit due to revenue sharing. Not only has Horizon reduced the costs of accepting payments, the program has now evolved into an income producer.
Service and Support
Horizon was previously spending approximately $100,000 per year to accept and process payments. And these were just the hard costs, not including employee time. When the Credit Union implemented Orbipay EBPP and started accepting online payments, it eliminated a significant expense that eventually led to a monthly credit due to revenue sharing. Not only has Horizon reduced the costs of accepting payments, the program has now evolved into an income producer.
Overall Experience
Ms. Conway goes on to say, “Orbipay EBPP has delivered what we wanted it to do. It’s set up to cut costs, reduce employee touch, and provide access for members to make self-directed payments 24/7. The product has really done what it was intended to do.”
