Carol Tucker of CF Bank

CF Bank Enters New Alliance

You can sense it in the boardroom and the branches, in the corridors and the offices. It’s innovation. The latest innovation going on over at CF Bank is a brand new strategic alliance with Universal Savings Bank Payment Processing, Inc. (USB).

Not a bank in the usual sense of the word, USB is a federally chartered savings bank specializing in electronic processing for small- to medium-sized merchants. It handles all merchant point-of-sale transactions such as every major credit card, all 20 ATM/debit card networks as well as check guarantee/verification--and on a national basis. USB (which has an office in Columbia) currently serves the Maryland, Virginia, Delaware and Southern Pennsylvania region.

CF Bank, with close to 160 merchant customers, plans to increase penetration of that market. So, when approached by Kelly Stilwell, regional manager of USB, CF Bank quickly discovered that an exclusive strategic alliance between it and USB would admirably serve both partners’ interests--and the interests of their customers. Importantly, the two companies also found a strong match in how each approaches business: with integrity and customer service uppermost in mind. From that stance, each believes, profit emanates naturally.

Says Carol Tucker, director of Credit Administration for CF Bank, "It’s not only the right thing to do; it’s the moneymaking thing to do." Such an outlook underscores that both CF Bank and USB believe that lasting corporate financial health can, in the final analysis, only be gained through the practice of the highest business ethics. Adds Tucker, "We both share a very strong value system and commitment to customers."

This means that the respective customers of each institution will see no reduction in the quality of service received as they take advantage of the new alliance. In fact, says Tucker, it will only get better. "We are always looking at different ways to add value to our products and services." She adds, "This will help us serve our merchant customers even better. And we have the ability to be very flexible in providing services--to discover what works best for them."

Examples of enhanced service levels will include the ability to meet merchants’ payroll needs by tracking time and attendance through the same terminal now used for processing credit cards; cutting payroll checks at a highly competitive rate; customer service representatives available 24 hours a day; and software that enables merchants to process payments and other transactions through their own computers. Or, if preferred, the company will offer merchants a wide range of terminals to suit their precise needs. Adds Stilwell, "With our mix of high service levels and new technology, we’re essentially using that new technology to serve customers the old-fashioned way."

This permanent alliance will enable merchant customers to accomplish all of their banking and financial needs at one single point. "One stop shopping," says Tucker with a smile. And that’s key, according to Stilwell. "Most merchants want desperately to deal with their local bank for everything--this alliance is a way for them to achieve that goal."

The synergy between the two is palpable as Tucker and Stilwell discuss the immediate future for the just-inked agreement between their two companies. In fact, they often finish each other’s sentences. The true essence of this alliance is "the ability for both companies to work together, and to work proactively," says Stilwell. And, adds Tucker with enthusiasm, "We have already referred customers to each other, even before the agreement was finalized." Stilwell says, "It’s a fantastic income stream for us both."

And both companies are quick to point out that the income stream will come from meeting perceived needs among merchants--and from the superior customer service they will receive. Says Tucker, "We’ll know all aspects of their business [so we can advise them from a knowledgeable standpoint]. And we’ll be there down the road. We don’t forget you after you sign on." Underscoring the benefit of CF Bank’s well-known presence in the region, Stilwell adds, "When it’s your money, it’s too important to trust someone you don’t know." And another very concrete advantage to CF Bank merchant customers is noted by USB’s Stilwell: "The bank’s rates and costs for opening business accounts are the lowest I’ve seen anywhere."

While the alliance will be doing a lot of education of area merchants, both Tucker and Stilwell are quick to point out that not all merchants will find the fit they need with the alliance. "We will tell them if we don’t think there’s a fit," they say. "This needs to be a win-win situation for us and the customer."

The primary target market for the alliance is small- to medium-sized businesses--already a market niche for CF Bank. "Conservatively, we expect to have more than 500 by the turn of the century," says Tucker. Any merchant opening a bank account in a CF Bank branch will automatically be given information on other merchant services available through the alliance. Information can also be acquired from any CF Bank manager. Eventually, the CF Bank and USB Web sites will be linked, enabling the customer to get information right there on line. Says Tucker, "The alliance makes both CF Bank and USB much more competitive in the merchant services arena. We want to do what we’ve always done, better than we’ve done it before and better than anyone else can possibly do it."

To make the alliance seamless to customers, Tucker points out "There will be a great deal of communication between our two companies--and lots of cross training of all employees." Intense staff training is currently on track to bring all staffers up to speed on how the alliance will work for its customers and on the specifics of the products and services offered.

The alliance between CF Bank and USB emphasizes that the smaller regional or community bank may be coming into its own. With industry giants gobbling up every financial institution in their paths, it often appears that the bottom line is just about the only thing on big banks’ agenda. While customers complain of high fees and declining personal service at many newly merged huge financial centers, the union of CF Bank and USB will provide merchant customers with very competitive fees and the personal service that is the cornerstone of both CF Bank and USB. Smaller banks, it can be argued, have their finger on the true pulse of what their customers want and need--and are more than willing to supply it.