To take away what some consumers see as a hassle to switch financial institutions, Texas Trust Credit Union is using a concierge service to make the transition easier.
The $680 million credit union in Mansfield, Texas, has launched SwitchAgent from Deluxe Corp.
Texas Trust said the way the service works is it will close out old accounts quickly and new members will receive a customized schedule and billing notification for each automated payment and deposit, simplifying the transition process and the transfer of pre-authorized transactions.
The free service allows consumers to transfer pre-authorized payments and deposits, such as gym memberships, car loans, mortgages, utility bills, and Social Security and payroll deposits, from their old bank account to their new Texas Trust account.
The average consumer has 1.3 automated deposits and nearly four automated payments associated with their accounts, according to Jim Minge, president of Texas Trust.
“It can take several months to move these transactions. That prevents many consumers from switching financial institutions even if they are unhappy,” Minge said.
Citing data from J. D. Power & Associates, the credit union said 66% of account holders would consider switching financial institutions, but don't because of the laborious transition process related to pre-authorized transactions.
SwitchAgent, aims to automate the process for new members, requiring only 30 minutes of their time, compared to 10 to 20 hours without the service, according to Texas Trust.
