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Reduce the Operating Cost of Savings Stamps Service

Addressing costs is a vital issue for Credit Unions as well as tackling inherent security & accountability issues. By Eoin O Sullivan

The impact of the recent economic

recession, as well as new regulations, have put new found pressure on Credit Unions and their members. A key issue for growth and sustainability is the reduction of operating costs. In order to reduce operating costs, Credit Unions must first identify services where cost cutting can be implemented. Until recently, there has been no viable alternative to paper based savings stamps. The average cost for a savings stamps service is 5,000 in printing stamps and stamp booklets per annum. If this service is managed by one member of staff, a conservative estimate in reconciling stamps and money would be 3,000 per year. Over a 10 year period, that amounts to 80,000 alone for a savings stamps service. Now that the costs have been identified, what is the solution?

The average operating cost of savings stamps is 5,000 per annum . A conservative estimate on staff time adds a further 3,000. That adds up to 80,000 over a period of 10 years for a service that gives nothing in return.
In 2008, Enterprise IT Ltd launched the Visual Savings Card, a revolutionary approach to paper based saving stamps. This system can be rolled out for a one off cost thats less the annual cost of paper stamps. Each member saves on their own card. Every time they save, the amount that physically appears on the card is updated. The system uses a proprietary software program and special ink free printer, which means the solution is also green. Along with cutting the costs of savings stamps, the Visual Savings Card addresses fundamental savings stamps issues, such as, fraud, money laundering, loss and theft, accountability and auditing.

2011 Enterprise IT Ltd

Reducing the Operating Costs of Savings Stamps Service

Protect against Loss Theft And fraud

Real Stamps Or Not?

One of the major concerns with savings stamps, is loss and theft. A full booklet of savings stamps can amount to 200. If a member looses their booklet, they have no recourse to the Credit Union, their money is simply gone. The Visual Savings Card addresses this problem in a number of innovative ways. Member details are stored in a magnetic stripe on the card and correlate to details and transactions held in an encrypted database. If a member looses their card, a new card can be issued. This means the members money is always safe. The generation of the new card, automatically makes the old one void. When the card is inserted into the printer, the members details, along with a photo if required, appear on screen, verifying who the person is. The card is also PIN protected as an extra security measure.

The Visual Savings Card is a PIN protected service, which means your members money is always safe against loss and theft. The inherent security features mean the card cannot be copied.

Stamps incorporate little, if any, security features. The advent of modern scanners and printers, makes it easily accessible to subversive individuals to fraudulently copy and reproduce stamps with no way of identifying them from the original. Even in cases where codes are printed on stamps, there is no way for staff to check them months down the line, or when presented with stamps with the same code, which stamp is the original. The magnetic stripe, thermochromic rewrite layer and encrypted database make the Visual Savings Card impossible to copy.

2011 Enterprise IT Ltd

Reducing the Operating Costs of Savings Stamps Service

Money Laundering And Accountability

It may come to as a surprise to many Credit Unions, but savings stamps is a service that has no way of detecting and identifying money laundering activity. Savings Stamps fall under SI 223/2004 Credit Union Act 1997(Exemption from Additional Services Requirement) Regulation 2004. A Credit Union must account in its books for all such transactions. With no accountability for stamps issued or redeemed, the savings stamps service is open to money laundering. Stamps can be purchased and redeemed on the same day, with no method of tracking their movement or who purchased them. Since each member has their own Visual Savings Card, their name, details and member number are linked to each transaction. A limit can be placed on how much a member can add and withdraw daily.

The Visual Savings Card combats money laundering activity and provides full accountability for all stamps issued and redeemed, including a year end audit trail.

With current paper based savings stamps, the day end routine of reconciling stamps and money can be a nightmare. With the Visual Savings Card system, one click of a mouse, provides a complete report on all transactions, regardless of volume. Year ending auditing is also a snap. Reports can be generated for any time period, giving a full break down of what members makeup the total savings stamps account balance. The Visual Savings Card is currently operating in Credit Unions all over Ireland. It is available in three different versions, a self service kiosk, counter based solution and a portable unit that can be taken to schools

2011 Enterprise IT Ltd