CUNA e-commerce division putting the heat on competitors

MADISON, Wis. - CUNA is taking off its e-commerce gloves. The trade's focus on e-commerce started last year with a board resolution to become more e-commerce oriented. Subsequently, it began aggressively announcing alliances to offer credit unions Net banking and Web site design/build services. Just last month the low profile "CUNA eCommerce" division announced a full suite of Net-based products, known as "CUNA's Online Access Services." CUNA partnered with Aquis IP Communications, Tampa, Fla., for the technology behind the products. Now in another no holds barred e-commerce move CUNA has said it will remove one of the biggest barriers for credit unions looking to get on the Web-cost. The trade announced that it will provide a free Web design/build solution for credit unions with the caveat that the credit union sign up for its Web hosting service. The Web site design/build service, known as CU Build A Site, is provide by Market.al, Cleveland, a company CUNA partnered with last October. "I think we're a serious player in e-commerce by the fact that we're not a dot.com that is in the market to make a buck today, have an IPO and then disappear. We've been listening to the leagues and have based our products on what credit unions want," said Doug Benzine, vice president of e-commerce for CUNA Strategic Services. Prior to this move, CUNA's Web site design/build solution cost about $3,500. Credit unions do have to engage in CUNA's Web site hosting service, however credit unions would have to pay for hosting anyway, said Benzine. "This takes care of the anxiety credit unions may have for building their own site. And it's economically feasible for credit unions that don't want to spend the $2,000 or $3,000 up front cost to build a site," said Benzine. The hosting service is priced at either $100 for the "Gold" package and $150 for the "Platinum" package. Both packages include the following items: a secure, redundant Web server with multiple T3 Internet connections; domain registration or transfer; search engine registration; Web server software tools and daily back ups; 24/7 administrative and technical support; an e-mail account for the CU's Web master; a general e-mail account for members to contact the CU; monthly statistical reports; free 30-day trial of Net access provided by the CU Internet Service Program; integration to CUNA's Virtual Private Network. Platinum service also includes a "Web master" from CUNA's support unit that will develop and maintain the site based on the credit union's wants; and monthly content updates (one hour per month, additional hours available for purchase). But there's much more significance to CUNA's free Web site design/build service than just a "good deal" said Benzine. Very quietly CUNA has put together one of the most complete turnkey Web solutions in the industry, said Benzine. Right now credit unions can go to CUNA for Web site design/build; Internet banking; ISP service for members; access to a Virtual Private Network; free e-mail accounts (for small CUs); online car buying services; online bill payment; and two online member publications (Home & Family Finance, Googolplex). Benzine said the CUNA e-commerce service getting the most attention from CUs right now is its ISP service. Many credit unions are looking into providing members with Internet access so they can keep the credit union's name on the minds of the members and also to begin a database of member e-mail addresses the CU can use for low-cost marketing efforts. CUNA is offering a number of ISP plans that range in price from $9.95 to $20.95 per member. It's up to the credit union to decide whether to subsidize that cost for the member, or actually try to make revenue on it. Access to CUNA's Virtual Private Network is also drawing interest from CUs, said Benzine, and it is the product he thinks will grow in importance this year. "People see the need for security. You would think it (the VPN) would be more for larger credit unions, but we're seeing interest from all size of credit unions," said Benzine. Some examples of how a VPN can come into play include giving the credit union a secure vehicle to send documents to its board of directors; sending sensitive documents to legal counsel; accepting payroll files from large SEGs; exchanging imaging files with third party vendors, and others. "It eliminates having to use FedEx Overnight. Right now credit unions concerned about security are using physical couriers instead of e-mail," he said. The VPN is more secure because it does not run on the public Internet. That service is being provided to CUNA by Intelispan, Tempe, Ariz. Benzine said CUNA's VPN is growing, but right now only about 20% of its pipeline capacity is being used. Other credit union e-commerce players have tried similar price-slashing techniques. Online Resources & Communications, McLean, Va., offers Internet banking service free of monthly user charges to financials that sign up for its bill pay service, while cavion.com, Englewood, Colo., has eliminated up-front costs associated with launching its Internet banking solution. CUNA eCommerce's Online Access products are being marketed in ten pilot states, with more coming later this year, according to Benzine. -pgentile@cutimes.com