A Recipe for Payments Success: In With the Old and In With the New?

The success of the credit union movement is rooted in relationships. So as credit unions look to attract new members for the future, are they supposed to sacrifice longstanding services and deprioritize their loyal members? Perhaps in certain industries, but for credit unions, I beg to differ. 

Dating back to the 1760s, many might consider checks a “legacy” service, but they’re certainly not disappearing. In 2023, Alloya processed over 136 million checks valuing over $178 billion. According to a 2023 survey, more than 50% of Americans wrote checks last year. Slowly but surely, check processing providers are exiting the business, a business they perceive as dying. To that, Alloya says We’re in it for the long haul. Check processing is a mainstay service that many of your members count on. It’s not cutting edge, but it’s attractive nonetheless.

Now let’s pivot to peer-to-peer (P2P) payments. According to Forbes (2023), an estimated 159 million U.S. consumers have used some form of P2P application, whether it’s a third-party digital application like Venmo or PayPal, or an embedded solution like Zelle. Either way, these solutions undermine the consumer’s relationship with their financial institution (FI). It’s the P2P solution’s brand that takes center stage while the FI plays second fiddle. What’s more, P2P payments are unnecessarily complicated and riddled with fraud. To that, Alloya says Let’s simplify this.

In partnership with two leading industry fintechs, we’ve launched a P2P solution that delivers perks at every level. For your members, it streamlines the process of sending money to their friends and family. For your members’ friends and family, it offers the freedom to always choose where their money goes. For your credit union, it prioritizes your relationship with your members while making you the gatekeeper of your solution so fraud can be stopped before it starts.

I’ll close with real-time payments. This is a service many members don’t yet realize they want or need, but will soon come to expect. Whether it’s a same-day paycheck that allows them to pay a near-due electric bill or a speedy down payment on their dream home, real-time payments will have meaningful impacts in the years to come. Naturally, Alloya has developed solutions to deliver real-time payment capabilities to your credit union and members. 

My point is this: Whether it’s a legacy solution like checks or a leading solution like P2P and real-time payments, they’re all important to us at Alloya because these are the solutions that allow your credit union to fulfill the varying needs of your members. No matter the member, no matter the need, count on Alloya to deliver payment solutions that will help your credit union stay attractive in the eyes of everyone.

Out with the old and in with the new? More like in with the old and in with the new, too. 

Kurt Stevenson, Senior Vice President, Payments

As Senior Vice President of Payments, Kurt Stevenson oversees the corporate’s payment strategy and operations, compliance and member product support. He has over 30 years of experience in executive leadership; and balance sheet and earnings optimization in the financial services industry.

Previously, Stevenson served as President and Chief Executive Officer for Centrue Financial Corporation, a publicly traded bank holding company, and its wholly owned subsidiary Centrue Bank (Ottawa, IL). Throughout his three-decades with Centrue, Stevenson rose up through the ranks by progressing through various operational and financial roles before being named President and CEO in 2011. During his tenure as CEO, he implemented and executed the overall direction, administration and financial performance of the company. He led the team that created significant market valuation appreciation through improvements in the balance sheet by strengthening and simplifying the capital structure, reducing nonperforming assets, organic growth and improving core earnings.

Stevenson holds his Bachelor of Arts in business administration from Lewis University in Romeoville, IL; and his Master of Business Administration from Keller Graduate School of Management.