TALLAHASSEE, Fla.-From its modest beginnings 20 years ago, Credit Union 24 Network has grown to a point where it now offers members at more than 350 credit unions the convenience of its network of 12,000 automated teller machine or point of sale locations. As one of an old guard that watched over its first shaky steps, its purchase a year later by the Florida Credit Union League, and then its recent transition in 1997 to ownership by Credit Union 24 Network, Jim Park, president/CEO is proud of the foresight of its handful of founders-Paul Simkins, Patricia Coker, Joe Hudek and Walt Simon, all CU officials at the time. It had not only benefited members of CUs in Florida, but early on Credit Union 24 was looking beyond Florida's borders. For instance, the network "played a crucial role in the creation of a national credit union electronic funds transfer network of networks, Members Access, in 1991," officials said. Today, members of Credit Union 24 receive a `no cost' gateway to Member Access Network, which links together all of the major credit union EFT networks." During the last few years, Credit Union 24 Network has grown from having a presence in 17 states several years ago to 21 states today, in terms of ATMs. And members also have the convenience of using point of sale locations in several nationwide retail merchant locations. "We became a cooperative at the end of 1997, when we were purchased by Credit Union 24 Inc., as a result of a study that showed that the network, to be successful, needed to grow in transaction volumes at a fairly rapid pace...," Park said. "We determined that there would be a better role for Credit Union 24 if it was spun off as an independent network." It became apparent that potential members were interested in having more control over it and wanted more say in its direction and operation, Park explained. Benefits enjoyed by members of the network include: shared ATM transaction switching and settlement among member CUs, including deposit processing; gateway access to Member Access, the Exchange, American Express ATM networks; ATM card production and distribution; and EFT processor links that include as ACS, Alliance Data (POS), Deluxe Data, EDS-Morris Plains, EPS, FIS, Intercept, FISERV-Portland, FISERV-ADOL, Intrieve Inc., First Data Merchant Services (POS), Trans Alliance, US Processing and VISA Debit. The link-up of the hundreds of credit union-owned ATMs allows traveling members to both withdraw funds and to make deposits at some of the network's ATMs. In addition, members have the added convenience of being able to use other ATMs within 33 states that carry the Credit Union 24 logo. These are owned by retailers or retail deployers such as American Express. Members also have use of 6,000 point of sale retail locations on the network, located in all 50 states. Some of these retailers, in addition to Wal-Mart, include Publix, Winn-Dixie, 7-Eleven, Phillips Petroleum, Citgo, and Crown Petroleum. Often they allow Credit Union 24 members to get cash back at the POS, in addition to paying for groceries, merchandise or gasoline. "With Wal-Mart and our point of sale activities, we're in 50 states, and also we have ATMs near London in the United Kingdom, as well as in Puerto Rico," Park explained. Because of the presence within retailers' locations nationwide and its affiliation with Member Access, officials at the network think of it as a strong regional ATM network with national coverage, Park said. "This does give us a national presence," he said. "We have always enjoyed working with the retailers. One of the things that was real apparent several years ago when surcharging became prevalent was that the banks were not our friends. "And they were actually proselytizing our members when members went to banks' ATMs, because they would let them know `if you were a bank customer of this bank, you wouldn't be surcharged.' "And so, the retailers may surcharge, but they are not doing that-trying to steal members," Park said. "We've found them to be excellent partners, and we've worked with a number of them and this year, we're just waiting for some links to be built... and we'll be expanding that involvement with retailers probably very rapidly. We adopted that strategy even before surcharging created the crisis that we are experiencing today." Credit Union 24 Network Marketing agents today include quite a number of CU leagues from Florida to Virginia/Washington. These are mostly in the South, but include Texas and Ohio. "We're very cognizant of the need to cooperate and are interested in expanding the network," Park said. "I believe we have a total of 12 leagues and/or corporates in the East that are marketing our network today. So, we're working with a lot of folks out there to grow the network, and our numbers have been fairly significant. The growth has been fairly astounding to me, and we're looking to do some more of that this year." As Credit Union 24 Network enters its 20th anniversary year, founders and others who have worked to build the network have taken time this year to get together and remember the early days and all it took to get the network up and running. "Back in the late `70s and early `80s, credit unions were becoming painfully aware that individually they could not afford the ATMs that that big banks were putting in," Park said. "So we all started to think back as early as the late `70s about working together. "Four (Orlando) credit unions in Central Florida actually did come together in 1980, which is now 20 years ago, which means this is actually the 20th anniversary (year) for Credit Union 24," he said. "They watched as banks deployed 100 or 200 ATMs at that time, giving their customers 200 different locations they could use." While they knew that "they could never do that," it did occur to them that if each of them put in one, then they'd have at least four locations in Orlando to send their members to. "So, that's exactly what they did," Park said. "They happened to all share a common data processor, and so ... they linked all four ATMs together, and basically started Credit Union 24. "They felt like it was important for credit unions to have some control over their EFT destiny." After that, founding members began to travel around the state and talk about what they had, and how it helped to form this cooperative link-up. They knew it was a "great concept" but they also knew they couldn't take it to the next level and still do their "day" jobs. "So they went to the Florida Credit Union League, and asked them if they'd be interested in purchasing the network for the sum of $1, to promote it statewide," Park said. "The league agreed, and developed a task force and a business plan, and eventually... they hired me." For the next two years, it was Park's job to drive around the state "incessantly," to try to explain to CU officials what ATMs were, and why they would be good for CUs. "I went to at least 100 meetings over the course of the first year, and tried to get the interest up, and we did. We were successful. So, slowly but surely, credit unions began to sign onto the network," Park said. "We continued that process for a number of years and continued to grow, and in the mid- to late-'80s, I was very active in the American Association of Credit Union Leagues (the national association, previously ACULE), and I began talking to some of their league presidents and CEOs, about a cooperative ATM network. Eventually the people at those meetings embraced my thoughts, and we were approached by the Louisiana league to market Credit Union 24 in their state," Park said. "We later helped some other states start some other, similar networks." It's been a long time coming, but after watching the network experience 25% growth in 1999 and with the planned move out of the FCUL facility and into its own new facility in October, Credit Union 24 Network officials say that the hard work has had its rewards. "We're excited about it all," Park said. -
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