The Expert s Guide to Self-Service Banking

Transcription

1 The Expert s Guide to Self-Service Banking

2 Introduction In handling our day-to-day finances nearly all of us use various banking services, including checking and savings accounts, to store and manage our money. But while the basic structure of the accounts we use may not have changed much over the years, the way we access them certainly has. Today, more and more of us are taking advantage of a variety of self-service options to gain access to our funds when, where and how we want to, often without the need to visit a banking facility or interact with a financial services professional. Whether at home, at work or on the road, we can use these convenient tools to get cash, move money around, keep track of our accounts and more. Using self-service options is both safe and simple. But with so many options available, it can be confusing trying to figure out which one is best for your particular need or situation. So we ve put this guide together to help all of us navigate the sea of self-service possibilities. Our goal, as always, is to help each of us become more and more expert at all things financial, unleashing the Power of Us as we take control of our financial lives. Today, more and more of us are taking advantage of a variety of selfservice options to gain access to our funds when, where and how we want to... The Expert s Guide to Self-Service Banking 1

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4 Why use self-service? It s a fair question. If doing things the old-fashioned way was good enough for generations of our predecessors, why should we do things differently? Does it really matter? To find the answer, let s look at a weekend in the lives of two hypothetical individuals, Chad and Melissa. Chad is a traditional sort of guy, and the way he sees it, if it worked for his father and grandfather before him, it should work just fine for him and besides, managing money ought to be left to the professionals; it s too risky to handle it yourself. Melissa, on the other hand, is a bit more progressive. If a self-service option saves her time or money, she s all for it. Friday morning Chad gets his paycheck from his employer and rushes over to his bank on his lunch break to deposit it into his account. Unfortunately, he s not the only person who thinks the way he does, so the line moves slowly. Half an hour later, he finally gets out of there, grabs a greasy burger at a drive-thru, and gets back to work just in time. Melissa also gets paid on Friday. Normally, she has her paychecks direct-deposited to her account, but this is her first paycheck on a new job so the payroll department hasn t gotten everything set up yet. No problem; she pulls out her smart phone, opens up the app from her credit union, and uses the camera to take a picture of the check and deposit it to her account. Then she s off for a leisurely lunch with friends. The Expert s Guide to Self-Service Banking 3

5 Friday afternoon After work Chad realizes he forgot to get cash back when he made his deposit, and he really needs some for the weekend. So he heads back to the bank and waits 40 minutes in the drive-up line, gets the cash he needs, and heads home. Melissa also realizes she wants some cash for the weekend, so on her way home she stops by the office of a credit union not hers, but another one that s in the same ATM network. Using her debit card, she withdraws the cash she needs without having to pay a fee or stand in line at a branch. Saturday morning Chad decides it s finally time to balance his checkbook, as his wife has been encouraging him to do (not the word he uses). But, there s a problem: he can t find the last two statements that came in the mail. Ever-resourceful, Chad calls his bank, knowing their phone center is now open on weekends. After pressing the keys saying he agrees to pay the fee they charge for talking to a real person, Chad tells the agent that he needs copies of the statements. The agent sees on Chad s profile that he gets all of his communication by mail, so she arranges for the statements to be mailed, for another fee, and ends the call. Chad has spent 30 minutes getting organized, and another 10 minutes on the phone, but he won t be balancing his checkbook this weekend and his wife doesn t seem too thrilled with his explanation. Melissa also decides to balance her account, so she uses her computer to go online to her credit union and download her account information into her personal financial management software. A few minutes later she s out the door on a run with her black Lab, Shadow. Saturday evening Chad and his wife take friends out to dinner, and he tries to pay using his debit card (his one concession to banking progress). Moments later the waiter brings back his card, announcing that it was declined! Embarrassed and 4 The Expert s Guide to Self-Service Banking

6 confused because he knows he deposited his paycheck, Chad hands over the cash he withdrew on Friday afternoon and heads home, ready to make an angry call when the weekend s over. Melissa and her husband are also out for dinner with friends, and Melissa puts the whole bill on her credit card (she s earning rewards points for a dream vacation), then has her friends use the apps on their phones to pay her their portions. Monday morning When Chad tries to call the bank the recording says his hold time will be 45 minutes, so instead he heads back over to the branch at lunch. After waiting 15 minutes he gives the teller a piece of his mind, only to have her respond by showing him an image of the deposit slip he used on Friday to deposit his check; he d used one from his wife s account instead of his own! With nobody to blame but himself, Chad heads back to work, his week off to a less-than-perfect start. On her way to work, Melissa gets a text from her credit union telling her that a transaction of a certain amount has occurred on her account. She quickly uses her phone app to check it out, and sees that her husband has bought her some flowers for their anniversary! She smiles and decides to keep that little piece of information to herself, acting suitably surprised when the delivery guy shows up at her office. So, in a little over one weekend Chad spent over two hours more than Melissa did managing his finances and ended up not getting his checking account balanced, and suffering the embarrassment of having his card declined. If that happens every pay period, Melissa will save more than 48 hours per year, not to mention a lot of hassle and stress. Whose method of financial management seems better to you? The Expert s Guide to Self-Service Banking 5

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8 What s out there While the stories of Chad and Melissa might be a bit exaggerated, there s no question that taking advantage of the tools that are available for self-service banking can make managing your finances less stressful and more convenient. And there are plenty of these tools out there, including some that have been around a while, and others that are so new they re not yet available everywhere. Here s a list of the most popular options available today, along with what you ll need to use them (it s simple) and the security features each employs to keep your information safe. ATMs Since showing up in the 1960s, this pioneer in the world of self-service banking has become perhaps the most common source of cash in the country. There are currently more than 400,000 ATMs in the U.S. more than four times the number of bank branches. These machines range from simple cash dispensers to advanced units that can even read deposited checks. There are plenty of these tools out there, including some that have been around a while, and others that are so new they re not yet available everywhere. While anyone with a debit, credit or ATM card and a Personal Identification Number (a PIN) can use almost any ATM regardless of who owns it, there may be fees assessed by both the machine owner and your own financial institution. There are, however, surcharge-free ATM networks that allow all of those with cards issued by member institutions to use any of the machines in the network without paying a fee. In addition to making deposits and withdrawals, you can also check balances at an ATM, and in some cases transfer funds between accounts. They may not be as pleasant to talk to as a human teller, but they re available 24 hours a day and with online search features and smart phone locator apps, they re much easier to find when you need one. What you need: A debit, credit or ATM card and a PIN. If you don t have either or both, contact your financial services provider. How it s safe: Because of the need for a PIN, someone who steals your card won t be able to use it at an ATM as long as you don t record your PIN where a thief can find it. The Expert s Guide to Self-Service Banking 7

9 Automated Voice Response (Bank by Phone) If you want to check your balances, review transaction history, move money between accounts or in some cases even send yourself a check, and you don t want to wait on hold or in line to do it, most banks and credit unions offer an automated phone service that lets you do these things from any touchtone phone. And while some institutions will charge you a fee to speak to a live representative to conduct these transactions, these automated services are free. Working through the various prompts can be trying and it might take some time to get all of the information you want, but if you just need to check your balance or find out if a check has cleared, this is a good way to get it done. What you need: In most cases, your account number and a PIN or pass code, both of which you can get from your provider. How it s safe: One, the need for both account number and access code greatly reduces the chance of unauthorized access. And two, most systems don t provide a way to get money out of the account to someone other than the accountholder, so the worst a would-be thief could do would be to move your money around within the accounts you own. Online Banking Soon after the advent of the Internet, banks and credit unions began offering their accountholders programs that let them manage their accounts, transfer funds and even pay bills from the comfort of their own keyboards. Today, more people access their accounts over the web than by visiting physical locations, and it s growing all the time. 8 The Expert s Guide to Self-Service Banking

10 As long as you don t need cash, you can do almost all of your banking using these online services. You can even make payments to businesses of every kind, and some services now give you the ability to pay any individual who has an address. What you need: Your provider s web address, a user ID and a password. In some cases you can complete your initial enrollment online; in others, you ll need to speak with a representative. How it s safe: In addition to the ID and password (which again, you shouldn t record together or anywhere someone could gain access), providers are now required to utilize additional security measures known as enhanced multi-factor authorization. These measures involve steps such as requiring a user to answer pre-arranged questions, and in some cases even requiring the entry of a one-time code that s sent to the registered user s address or phone if access is attempted from a non-registered computer. Note: Some web browsers offer the option of storing password information for particular websites. We don t suggest taking advantage of this option, as it will give someone who accesses your computer the ability to get into your accounts. Mobile Banking Not even imaginable 10 years ago, mobile banking allows you to do everything you can do through your online banking system using your smart phone or tablet, for that matter. From SMS services that use text messages to convey information, to customized applications for iphones and Android devices, these services have caught on quickly. Millions of people are already using them, and for some their phones are now the only way they access their accounts. What you need: A phone, an app (specific to your provider) or mobile web browser (not needed for SMS), and the same user ID and password you d use for online access. You may need to enable mobile access from within your account online, so you ll need to have arranged online access already by whatever means your provider requires. How it s safe: Access requires both a user ID and password, which of course you would never record together or where they can be found by prying eyes. And we strongly suggest utilizing a code to access your phone, so unauthorized folks can t even get to the app to try anything. The Expert s Guide to Self-Service Banking 9

11 Mobile Deposit Also known as deposit-by-phone, this tool within some mobile banking applications lets you take a picture of a check with the camera on your smart phone and deposit it into your account. It s not yet available everywhere and not everyone will qualify to use it, but for those who do it s the pinnacle of banking convenience. What you need: Your provider s app (downloaded from the app store appropriate to your particular smart phone) and the required user ID and password. In most cases, not all app users are authorized to make mobile deposits, so you ll need to check with a representative to make arrangements. How it s safe: Using the app requires both a user ID and password (standard caution here about storing your info). And since this is about putting money into your account rather than taking it out, this particular feature doesn t necessarily add any risk for you, just for your provider hence the fact that not everyone will be eligible. Vcom Self-service Kiosks Available to members of credit unions affiliated with a national shared branching network, these units (found in more than 2,200 7-Eleven stores nationwide) let you make deposits, withdraw cash, make loan payments by check, make transfers between your credit union accounts, and check your balances and recent transaction history. There s no fee for using the units, and the stores where they re located are all open 24 hours a day, seven days a week. What you need: The name of your participating credit union (sorry, bank customers!), your account number there and any debit, credit or ATM card or valid state ID/Driver s License with a magnetic stripe on the back. How it s safe: To gain access the first time you ll have to answer some security questions, the answers to which only you should know. After that you ll pick a PIN for future use. 10 The Expert s Guide to Self-Service Banking

12 Personal Financial Manager (PFM) Commercially available for years under names like Quicken and Money, systems that let you bring all of your accounts together in one place are now also available free of charge from some financial institutions. These tools let you monitor different types of accounts, track your spending, manage your budget, improve your savings habits and even make sure your bills are paid on time. What you need: If you re using a PFM feature inside your provider s online banking system, you ll need their web address and your user ID and password to get in. You ll also need account and access info for any accounts at other providers that you want to include. How it s safe: Since you re inside an online banking system, you have all the security features mentioned for those. The Expert s Guide to Self-Service Banking 11

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14 How to get the most from self-service Before we launch into a detailed how-to regarding selfservice, we need to acknowledge the obvious: how to best make use of these tools is up to you. Still, if your goal is to make managing your finances as convenient and stress-free as possible without compromising security or increasing expenses, these tips can help you reach that goal. 1. Think outside the branch. Those of us who are over 30 were programmed to think that interacting with a financial institution meant going to a physical location, but many of those under that age can t imagine any reason why they d ever visit one of those places! And here s why: getting cash (or making a deposit) is almost always quicker at an ATM than in a branch; transferring funds or making a payment takes far less time online than with a teller; and checking your transaction history using an automated phone system almost never requires a hold time. 2. Never use a person when a machine will do. In this age of technology, it s almost always less expensive to have a machine do something than to have a person do it. Because that s true, financial institutions have good reason to make automated or electronic processes more convenient, available and affordable than those that require an employee to be involved. Using the electronic method means you can do it on your schedule, with little or no waiting, and often without paying a fee. 3. Automate and you won t be late. With your payments, that is. Why risk a late fee when you can set up automatic payments for your loans and credit cards? It s easy to do within most online banking systems, and doing it yourself gives you control if you ever need to change it. Oh, and you can also use the same tool to set up transfers to savings accounts, putting money away for a rainy day. 4. Be alert or at least set some up. Wouldn t it be nice if when something significant happened on your account, someone would get in touch with you to let you know? Most online banking systems allow you to Using the electronic method means you can do it on your schedule, with little or no waiting, and often without paying a fee. The Expert s Guide to Self-Service Banking 13

15 set up alert s or texts, sending yourself notices when a deposit comes in, an item clears or a balance falls below a certain level. Don t just use the system as a file cabinet, storing information until you go look at it; use the tools to their fullest extent to keep you up-to-date and avoid the trouble that comes with not knowing what s happening. 5. Know all of your options. Chances are, you know where your institution has offices closest to your home and work. But, do you know where the ATMs are that you can use without paying a fee? Many institutions have these machines in non-branch locations, such as inside pharmacies and convenience stores and in or near malls and public venues. Some (mostly credit unions) have agreements with other institutions to allow use of each other s ATMs by their members/ customers. And then there s the differing functionality: some ATMs accept deposits, while others don t. Your institution probably has a web tool, or even a function within a mobile app, that lets you search for ATMs that can accommodate your present need. 6. Keep it to yourself. Your personal information, that is. If you re using multiple self-service options, you might have multiple usernames, passwords, PINs, etc. Resist the temptation to write them down, record them on your computer, or share them with others. Most financial institutions have tips online for protecting your information read them, and follow them to keep yourself safe. 7. Protect the rain forest and your identity! We don t know the exact answer, but can you imagine how many trees it takes to create the millions of paper statements that financial institutions mail out every month? And printed on those statements is important personal information that sits in mailboxes for hours (or longer) just waiting to be stolen. Save a tree, and your identity, by switching to online statements. 8. Have a backup. The vast majority of institutions online systems have uptime of greater than 99%, but you can almost count on the fact that when it does go down, it s going to be when you need it. So whether it s knowing where there s another ATM nearby, or carrying an emergency card from another institution, 14 The Expert s Guide to Self-Service Banking

16 it s best to have a backup plan. Oh, and keeping a few dollars of emergency cash wouldn t hurt, either. 9. Trust the system, but check the math. Remember, the old saying is to err is human, not to err is digital. The chances of an automated system making an error in calculation are almost nil, whereas human error, though still rare in the banking world, is a greater possibility. That said, it still makes sense to compare your receipts (and your expectations) with the statements you receive. Using PFM systems makes balancing easier, but you still have to actually take the time to do it. (And it needs to be timely, as there s a 60-day or two-statement window in which you have to notify your institution if you find an unauthorized transaction.) Plus, find some way to record your transactions when you make them (a check register still works) so you ll have a running balance even the best online system doesn t know what checks you have outstanding! 10. Communicate, communicate, communicate. Selfservice is great, but two people serving themselves from the same account can cause problems if they don t let each other know what they re doing. If you have someone else on the account with you, make sure you both know what transactions have been completed, what s pending, and so on. They say finances are the number one cause of relationship problems, so let s not let that happen to us. 11. Don t stop at the basics. Self-service options get more and more robust all the time, so don t limit yourself to using them for just the obvious. Today s online banking systems let you change your address, place stop payment orders, dispute unauthorized transactions and more. Wouldn t you rather do these things when and where it s convenient for you, instead of waiting for business hours and having to place a call or go somewhere? 12. Always ask yourself: Is there a faster way to do this? Driving to a branch, calling and waiting on hold, or using a mobile app which one is the fastest way to check your balance? No matter what you re doing, the old fashioned way is probably more timeconsuming and since time is money, why would you want to waste it? The Expert s Guide to Self-Service Banking 15

17 The time is now As we ve said, using self-service options to manage your finances will save you time and money time better spent doing enjoyable or productive things, and money better spent on well, on almost anything or nothing at all! The bottom line here really is the bottom line, because financial experts spend their money on things that matter most to them, instead of wasting it doing things the expensive way when they don t have to. So, the next time you find yourself about to visit a bank or credit union office, or get in touch with a call center, choose a self-service option it s what an expert would do! 16 The Expert s Guide to Self-Service Banking

18 Self-service options at Arizona Federal CU Online Manage accounts over the internet. With CU Online we can view our balances and account history, pay bills, transfer funds, schedule automatic transfers, and much more! It s your personal branch whether at home or the office. To access CU Online, visit ArizonaFederal.org. Mobile Banking Just like CU Online, Mobile Banking allows us to access our accounts through a smart phone or good ol flip phone. With Mobile Banking, you have the option to manage your account via text message, our mobile device-formatted website, or through our mobile banking application found in the Apple itunes store or Google Play. So when you can t access a computer to manage your account, try your mobile device. Mobile Deposit Skip getting in the car, or riding the bus, or however it is that you visit a ServUs Center (or ATM) just to deposit a check. Mobile Deposit is a snap really. For qualifying members, depositing a check using our Mobile Banking application is just like taking a picture with your phone. Mobile Deposit allows you to deposit checks to your account from anywhere. No need to fill out a deposit slip. Snap a picture of your check and your deposit is complete. Arizona Federal ATMs Need cash from your account or to do a quick transfer? Avoid the teller line with our ATMs. Get cash fast and transfer funds quickly without having to enter the ServUs Center - and for those locations that have a drive-up ATM, access your account without leaving your vehicle (especially nice during our warm summer months!). continued on back page The Expert s Guide to Self-Service Banking 17

19 More Self-service options at Arizona Federal Co-Op Network Just because you re not near an Arizona Federal ServUs Center or ATM doesn t mean you don t have access to your account. Our partnership with the Co-Op Network gives you access to over 28,000 surcharge-free ATMs across the United States and in Canada and other foreign countries. Of the ATMs in this network, about 9,000 accept deposits. So regardless of where you are, the Co-Op Network makes account access easy (and inexpensive). Visit ArizonaFederal.org to find the Co-Op Network ATM nearest you. Vcom-Self Service Kiosks at 7-Eleven Stores Available to Us because of our membership in the FSCC national shared branch network, the Vcom units at select nationwide 7-Eleven stores are 24/7 self-service kiosks where we can access our accounts. The Vcom unit allows you to perform many of the basic teller transactions such as checking your balance, transferring funds, and depositing checks. So the next time you re buying a cup of Joe, you can perform an account transaction - all in one stop (even when you re outside the Valley). Visit ArizonaFederal.org to find a Vcom Self-Service Kiosk near you. FinanceWorks Build your savings and track your spending by linking all of your banking and credit accounts. FinanceWorks helps all of Us manage our budgets better by showing us our entire financial picture, all in one place. You no longer have to go from website to website with all of those different logins and passwords to review your accounts. With this tool, it s all together in one place. Access FinanceWorks by logging in at ArizonaFederal.org. TouchTone 24 Don t wait on hold to hear your account balance. With TouchTone 24, our bank-by-phone system, you can check your balance, transfer funds, make payments, and more. It s easy to use, and it s free! To access TouchTone 24, simply call (602) The Expert s Guide to Self-Service Banking