GFA FCU PREMIERS SELF-SERVICE BANKING AT NEW HIGH TECH BRANCH

AVON, Conn. SEPT 21, 2004 — ‘Knowing your members’ is more than a slogan at $209M GFA Federal Credit Union. It’s a strategy resulting in new services at a new location designed to capture new, younger members. It’s also inspiring service changes at GFA’s well-established branch locations.

Serving predominantly the towns of Gardner, Hubbardston and Winchedon, Massachusetts, GFA earned 35% market share through its focus on mortgage and consumer loans plus checking products delivered by friendly and efficient branch locations. However, the slow growth in these towns persuaded GFA to seek additional service areas.

“We focused on Rutland, Massachusetts because it’s one of the fastest growing communities in the state,” said Kebby Lee, Marketing and Business Development Officer at GFA. Lee’s market survey found that serving Rutland’s residents involved more than constructing a branch.

“We uncovered key differences between GFA’s current service area and our target membership in Rutland,” said Lee. “Demographics show a higher income and there’s a greater percentage of computer ownership. But more importantly from a service point of view, Rutland’s residents leave the area at 6 a.m. and return after 6 p.m. on weekday nights. That’s a recipe for after-hours services and self-service solutions such as kiosks and Internet-based services.”

As a result of Lee’s research, GFA’s new Rutland branch will combine traditional tellers and Financial Services Associates with self-service, 21st century technology. The branch’s self-service area will be open 24/7 and will contain ATM and kiosk workstations, a first for GFA.

“The kiosk will play an ‘attract loop’ that depicts various life stages and shows how GFA can help,” said Lee. Members can interrupt the loop at any time and research balances, pay bills, shop for rates, get instant loan decisions, and purchase special services such as insurance and identity protection. They can even rate the institution through the kiosk. To encourage kiosk usage, GFA plans to offer kiosk-only specials.

The kiosk is produced by Rhode Island-based MontegoNet, a manufacturer of interactive kiosk hardware and software for such companies as Home Depot. The company’s design for GFA will keep members focused on a kiosk version of GFA’s web site.

Connectivity for GFA’s kiosks is provided by the credit union’s technology service, Connecticut-based COCC. Lee explained that COCC’s communications capabilities enable GFA to add kiosks throughout its branch network without adding new data lines or significantly increasing network cost.

Richard A. Leone, COCC’s President and CEO, added that COCC also provided member data for the analysis that helped GFA locate members living in the Rutland area and determine which products they use. “Going forward, GFA will use our INSIGHT core system to deliver consistent member experiences across all service channels. This is how technology brings value to credit unions and their members alike.”

Because COCC’s electronic banking system is integrated with the core account system, GFA’s member and account information is constantly updated with debit, ATM and home banking activity. This provides complete current balance information to the members.

Tina M. Sbrega, GFA’s Chief Operating Officer, explained that the kiosk is intended to introduce members to service choices. “They can use the traditional teller, the Financial Services Associate, or the kiosk,” Sbrega said. “Financial Services Associates are available to escort members through the kiosk’s functions.”

GFA plans to install the kiosks in all branches plus several remote locations. The number of kiosk demonstrations given by each financial service advisor will be tracked, and GFA plans to incent advisors who exceed the required number of demonstrations per month.

“We want employees to embrace what we’re trying to do,” said Sbrega. “We want to free our time from ordinary banking tasks so we can spend more quality time with our members and help them through the critical financial moments in their lives. We are looking to change staff and member behaviors.”

Sbrega added, “The new Rutland branch, kiosk program and after hours services will update our image and position in the market. Other institutions offer Internet cafes, but GFA’s kiosk is more user-friendly and more focused on the audience.”