Navy Federal Credit Union Improves Collections and Fraud Performance With TSYS/PAR3 Solution

SEATTLE and LAS VEGAS – PAR3 Communications, a leading provider of enterprise customer communication solutions, announced today at the 9th Annual National Collections & Credit Risk Conference, that Navy Federal Credit Union (NFCU) has expanded the use of its notification solution, which is delivered through a partnership with TSYS. In addition to helping it catch card fraud faster, the credit union now uses the hosted solution to collect past due card payments. The new TowerGroup report, Navy Federal Credit Union and Proactive Alerting: An Early Adopter’s Results with Automated Outreach, written by Senior Analyst, Ed Kountz, highlights the effectiveness of using the communication solution for both fraud and collections.

NFCU first deployed the TSYS/PAR3 communication solution in October 2003 to reach more customers about suspicious card activity faster and more cost- effectively than its dialer-based solution. This in turn allows agents to increase intensity on highest risk queues or focus on other duties. Within days of deploying, the credit union confirmed 12 cases of fraud and saved $400,000 in potential losses. It now spends 18 percent less to identify each true fraud case.

This early success led NFCU to deploy the solution to help it interact with customers about account delinquencies. With more than 1.2 million credit cards in the market, the collections side of the bank provided an even greater opportunity to automate individual customer “conversations.” In addition to increasing communication capacity, the automated solution offers customers a variety of self-serve payment options, which has already proven to increase dollars collected to dollars spent, reduce roll rates and improve agent productivity.

“We are experiencing a significant decrease in delinquent accounts and continue to make modifications that are creating even greater returns,” said Troy Singletary, Assistant Vice President of Collections, NFCU. “We are impressed with the solution provided by TSYS and PAR3 and have already identified several additional areas that we believe the solution will help us drive more value from each customer interaction.”

Several of the largest banks in the country use PAR3′s solution to interact with customers via personalized messages about time-sensitive account activity, giving the account holder multiple options to take action. This includes authenticating their identity, reviewing recent transactions, validating or refuting them as legitimate, making a payment on a past due bill, or transferring to the contact center.

“Across the financial services industry, the twin goals of supporting customers more effectively and reducing manual service costs have spurred leading firms to explore single-channel or multi-channel alerts across a variety of customer-facing processes,” notes Kountz in his report. “The ability to drill deeper into customer records on fraud and collections enables Navy Federal to increase productivity, enhance efficiency, improve customer service, and benchmark reduced fraud losses and improved collections rates.”