Catalyst Corporate has announced a lockbox service for natural person credit unions that aims to provide them with a secure and affordable method for processing a range of payments, said Karen Coble, a Catalyst vice president.
The core aim is to free credit unions from the time-consuming process of handling loan payments. “Our intention is to add back office efficiencies to our credit union members,” said Coble in an interview. She added that Plano, Texas-based Catalyst expected to sign up perhaps 25% of its members for this service – “It could go higher,” said Coble, who indicated fees would be based on volume.
To Coble’s knowledge, no other corporate presently offers a lockbox service except for Western Bridge. “Our members are mainly doing this internally now,” she said.
Although Catalyst recently was awarded the right to pursue acquiring the failed Western Bridge, Coble indicated the Catalyst service is distinct from what Western Bridge had offered. “We have been planning to do this ourselves, regardless of what happened with Western Bridge,” she said.
“We already are seeing a lot of interest in this from credit unions,” added Coble. “This is the kind of process they want to outsource and, at Catalyst, we see ourselves as the technology provider to natural person credit unions. This is part of that plan.”
In a prepared statement issued by Catalyst, Coble offered more details: “Handling incoming credit card or loan payments is time-consuming for credit union employees. In addition to payment coupons and checks, members often send in address changes, correspondence, unsigned checks, checks without payment coupons and sometimes even cash.”
The statement continued: “Catalyst Corporate’s new lockbox service will manage these repetitive tasks, so that credit union staff can focus on serving members.”
