The PayNet Deposit Program: Check Casher-Credit Union Partnerships and the Point of Banking Machine

This report outlines the key aspects of the PayNet Deposit program. It is a partnership among check cashers and credit unions in New York to provide a facility of accessing accounts through check cashing locations to the credit union members.

The report states that overall, the goal of this program is to capitalize on the similarities between the financial needs of check cashing and credit union customers to bring them extended service and convenience.

• Through Point of Banking (POB), credit union members gain access to a large number of locations to engage in financial transactions;
• Credit unions can expand their membership base through increased locations;
• Consumers benefit from the program, as the POB machine allows immediate liquidity of funds if checks are deposited as cash;
• Consumers can separate funds into different accounts right at the POB terminal;
• The program allows consumers to save money and earn interest on funds.

Analyzing the existing situation, the paper presents some challenges that must be overcome to expand the program:

• Training the staff;
• Marketing the program;
• Evolving strategies to enable lower-income consumers to access credit union services in areas where physical branch is absent.

In conclusion, the author observes:

• The PayNet Deposit pilot program offers an insight into making a business case for expanding financial services for underbanked consumers in a way that benefits all;
• There is potential for the program to move to scale, but challenges remain.