NAPERVILLE, Ill. and PLANO, Texas–Alloya Corporate FCU and Catalyst Corporate FCU reported they have formed a strategic partnership to ensure that credit unions across the United States can continue to offer check writing and check deposit services to their members “well into the future.”
According to the two organizations, as part of their partnership, Alloya will transfer all of its existing check images and convert share draft and deposit processing to a common platform hosted by Catalyst. In addition, Alloya and Catalyst have formed and funded a new CUSO, TranzCapture, LLC. TranzCapture will integrate Branch, ATM, Mobile, and Business (Merchant) Capture applications through a single administrative module and web delivery interface. It will simplify credit union’s operational lives as all check deposits, regardless of source, will be accessed by credit union staff through a single sign-on process and a single administrative dashboard. The new deposit solution will be more efficient, more secure and easier to administer, the companies said.
“As technology and consumer payments evolve, the number of checks written continues to decline – down 70% over the past 15 years. The check processing business is moving into a mature phase of its life cycle, which means that service providers are usually forced to raise fees, cut investment, and may even fail in some cases,” said Todd Adams, Chief Executive Officer, Alloya Corporate FCU. “The Alloya/Catalyst partnership is strategic to the credit union system as a whole as it ensures credit unions will have access to a cooperatively controlled check processing solution that is focused 100% on credit union needs. Credit unions will be very well positioned to continue offering checking services to their members for the long-term.”
“Corporates collaborate in many ways to provide services to credit unions. The TranzCapture CUSO was created to fill an emerging need – to provide efficient remote deposit services to credit unions on a next generation platform (TranzCapture),” added Kathy Garner, President and Chief Executive Officer of Catalyst Corporate FCU. “Many of the platforms in use today were created in the early 2000s in response to the Check Clearing for the 21st Century Act (Check 21). TranzCapture, scheduled for completion later this year, will operate as a ‘thin client’, and integrate various stand-alone applications through a single administrative module,” continued Garner. “Besides the increased service and functionality we can provide, we own and control the pricing and innovation, important considerations for the future.”
The joint venture initially extends “this innovative RDS solution to more than 3,000 credit unions that are members of Alloya Corporate or Catalyst Corporate. Other credit unions are welcome,” the two corporates said.
Plans call for testing the joint solution through the third quarter, with the branch capture transitioning in Q4 and most eligible Cus able to fully transition to TranzCapture in 2017 The corporates said initial deployment is minimal, and system updates and enhancements are performed automatically in the background over the Internet.
The CEOs of Alloya and Catalyst recently sat down with Dallas television personality Jane McGarry to discuss the partnership. To watch the 8-minute video, go to https://vimeo.com/178350547/49809414e7.