KQ Article

A community bank capitalizes on local market developments by simplifying the switch between financial institutions.

German American Bancorp
Jasper, Indiana

The timing couldn’t have been better. German American Bancorp, a Jasper, Indiana-based financial institution with 34 offices serving 12 counties across southern Indiana, learned that one of its local competitors had been acquired by a larger competitor in its footprint. This presented a golden opportunity for German American to attract new customers who might be willing to switch.

At the same time, Deluxe was recruiting financial institutions to participate in a pilot program for Deluxe SwitchAgent^SM (see below), a new solution designed to speed and simplify the switch to a new financial institution. “We knew that the conditions were ideal for getting new customers to choose us as their next bank,” said Jane Balsmeyer, Vice President and Director of Marketing at German American. “And in our research, we confirmed that one of the biggest reservations about switching banks is that it can be very complicated, especially for those who make multiple payments and deposits electronically. We saw opportunity there.”

According to Balsmeyer, the current paper-based switching process at German American was somewhat effective but extremely hands-on. Many times, front-line employees were gathering the necessary customer information and completing phone calls themselves, as a concierge service. Such service was consistent with the bank’s personalized approach, but it was also time-consuming, possibly preventing employees from attending to other critical forms of service.
“We knew our switching service could be more efficient, but we didn’t want to lose the high-touch aspect of what we were providing,” Balsmeyer said. “We never considered outsourcing this function to a third party. But since this was Deluxe, we were willing to listen. It turned out that we were in the perfect place to get on board.”

Fast Rollout
In September 2011, just two months after learning about the new Deluxe solution, German American made SwitchAgent available across its branch network. Bank management and Deluxe representatives offered training at each location to help employees understand how this new solution works, whom it benefits and how.

The SwitchAgent service begins immediately after a customer fills out a form authorizing German American to transfer his or her preauthorized transactions. A Deluxe representative takes over from there, collecting account information from customers and notifying payers and creditors of the upcoming switch. Accountholder security remains a top priority throughout. Both the customer and German American are kept apprised of progress at every step. The typical switch takes 30 to 45 days.


“As the Deluxe agent walked us through the process, we began to understand what the customer would experience and we got more excited about it,” Balsmeyer said. “We felt especially good that we can go to a secure web page and see where every customer is at in the switching process at any time. This accessibility gave us the sense of oversight we needed to get buy-in across our institution.”

Balsmeyer admits it was difficult to put such sensitive customer interactions into the hands of an outside resource. However, her bank’s longstanding relationship with Deluxe helped make the decision easier. “Since we have such high service standards, it is natural for us to want to tightly control every customer encounter,” she said. “But we were familiar with Deluxe as a call center and service provider that is highly regarded across this industry, so we knew our customers would be in good hands.”

German American promoted its new switching service through targeted radio spots, along with point-of-sale advertising at all offices and prominent display on the bank’s website. At the time of this writing, nearly 70 new customers have been onboarded through the Deluxe SwitchAgent service. Customer feedback has been consistently positive.

Immediate Results
Although German American has only been offering the SwitchAgent service for a short time, Balsmeyer says her management team is already seeing positive impact across the organization.
“Our customers appreciate the speed and simplicity of the experience, and it frees up our front-line staff for other services that contribute more directly to our bottom line,” Balsmeyer said. “We are also finding SwitchAgent to be useful for fraud victims who often have to open new accounts as a security precaution.”
In addition to acquiring customers in markets where it is already established, German American is using SwitchAgent to differentiate itself in two new growth markets for the company: Evansville and Bloomington, Indiana. 

“We feel good about our decision to go with SwitchAgent, and overall we are very pleased,” Balsmeyer said.

“I would recommend this service to other banks. Since it is a new service, it can be a competitive advantage to get into the program sooner rather than later.” 

_{© 2012 Deluxe Enterprise Operations, Inc.}

Deluxe SwitchAgent^SM
Get more accounts to move your way. 

Increase competitiveness, customer loyalty and employee
productivity with Deluxe SwitchAgent. It’s the first automated
process for switching preauthorized transactions from one
institution to another — and removing this burden from your
customers and your financial institution.

Once a customer fills out a simple form, we manage the rest,
keeping the entire process safe and easy. Deluxe SwitchAgent can
help you boost your numbers in a host of powerful ways, including:

Acquisition
Make moving easier and attract more new accounts

Onboarding
Create stronger account relationships immediately

Anchoring
Generate new cross-sell opportunities for deeper accounts

Retention
Dramatically reduce attrition

Learn more today at: Deluxe.com/switch