(March 25, 2014) -- credEcard, the e-money current account, Visa debit card and rewards scheme, has announced the launch of credEcard Instant Issue. The product enables Credit Unions to cost effectively issue instant loans to members via a one-time-use Visa debit card, without the need to hold large amounts of cash on the premises. By doing so, Credit Unions can deter their members from turning to higher-interest payday and logbook lenders for immediate access to short-term funds and crisis loans.
"credEcard Instant Issue has helped us to better serve our members and protect our staff and premises," comments Peter MacDonagh, Manager of Riverside Credit Union, Merseyside. "Previously, large amounts of cash were needed onsite to fulfil loan requests. This carried a significant security risk and was also costly as the management and transport fees for cash can be sizable. Now all we need is a computer system and a card reader. Fantastic. Everyone is safer and the whole operation is more efficient, enabling us to do our jobs better."
So far, ten Credit Unions have adopted the product, with a host of others around the country in the process of enquiry and implementation. When taking out a loan, customers are issued with a plastic payment card, with which they can withdraw the funds. There are currently 1000+ Instant Issue cards in circulation, with projections expecting in excess of 10,000 by the close of the year.
Michelle Howlin, Chief Exec of Waltham Forest Credit Union in North London agrees both security and convenience are paramount for Credit Unions: "credEcard Instant Issue enables us to get money into the hands of people that need it straight away. Doing this helps us to deter our members from using less ethical providers, like payday lenders and logbook loan companies. This, coupled with the high levels of governance which oversee the Credit Union industry, make the services we offer an altogether better proposition for our members than the 'instant cash' market."
"Services of this kind are of crucial importance right now," adds Geoff Leech, Managing Director of credEcard. "Unfortunately, many people that need rapid access to cash think that extreme interest lenders are their only option. credEcard Instant Issue helps credit unions to offer a competitive and ethical alternative. It also provides another avenue through which they can give financial guidance to their members. To support the education process, recipients of the Instant Issue card will also automatically receive a credEcardplus current account that provides functionality - including express money transfers, bill payments, ATM withdrawals, money management tool and mobile app - in addition to generating cash rewards for users at a range of specially selected high street stores. All of this innovation has been developed in response to the needs of credit unions and their members. We are continuing to work closely with our welfare support partners to understand their pain-points and add functionality to our platform to solve as many issues as we can."
By partnering with credEcard, credit unions and associated organisations - including housing associations and local authorities - are able to support those they serve with the required budgeting tools and account facilities at no cost to them. Last year, credEcard also launched its Envelope Facility, an advanced jam-jar budgeting tool that is designed to help account holders avoid getting into financial difficulties by ring fencing essential funds for rent, care provision and utility bills, for example, leaving the remainder of their monthly income free to spend or withdraw as cash.