Important Dates

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Fourth Quarter 2009. .

In this Issue

Dear Clients & Partners:

As this edition of Touchpoints is delivered, I'm sure everyone is in the midst of the holiday season, along with closing out a very unpredictable 2009.

OneBridge has had a very busy fall, with new clients signing and existing clients converting to new core processors. We also have been busy on the partnership side, announcing new products and services. I'd like to share some of the highlights with you.

• We continued to grow in terms of clients and core interfaces, and we opened up two additional states with new client agreements:

• Ukrainian Self Reliance FCU in Philadelphia, PA
• Granger National Bank in Granger, TX

• We converted clients that signed with OneBridge earlier this year:

• United Health Credit Union in Burlingame, CA
• Unified People's Federal Credit Union in Cheyenne, WY

• We supported long-term clients in their conversions to new core processors:

• Heritage Federal Credit Union in Newburgh, IN
• Concord Diablo Federal Credit Union in Concord, CA

• Existing clients continued to sign long-term renewal agreements that include additional services from OneBridge:

• Link Federal Credit Union in Indianapolis, IN added PIN Debit and ATM Services
• NorthPark Community Credit Union in Indianapolis, IN added PIN Debit,  ATM,  and Gateway Credit Card Processing Services

• We forged a strategic relationship with Members Access Pacific (MAP) for reloadable and disposable pre-paid programs.

As 2010 approaches, everyone at OneBridge continues to focus on maximizing the value of our clients' card-related payment programs with our unique blend of high-tech, high-touch solutions. Our commitment to giving you more service at a better price than you could get with the "big guys" remains strong.

2009 has been a good year and on behalf of the entire OneBridge team, thank you for your business.

Happy Holidays!

Jim Kern
President

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As the economy continues to struggle and unemployment remains high, now's a good time to review your card program.

• A slow economy and high unemployment can create an increased potential for fraud and cardholder abuse. Traditionally solid cardholders may have trouble making their monthly minimum payments. Some may even default.
  
  
• If you've experienced staff turnover or reduced the number of staff devoted to your card program, you may have gaps and omissions in your operating procedures. Without complete procedures that are faithfully followed at all times, you run a greater risk of card losses.
  
  
• In the wake of numerous bank failures, all financial regulatory agencies are placing increased emphasis on an institution's system of internal controls. They are looking for complete, documented and effective policies and procedures - and card operations are not exempted from this scrutiny.
  
  
• The economic downturn can also lead to increased competition from institutions looking to replace lost interest income with other types of revenue. This can stifle your ability to grow your card program.

Here at OneBridge, we think these challenges to the industry overall can translate into golden opportunities for OneBridge clients. We recommend you take time now to review your card program with the following objectives:

1. Strengthen your system of internal controls

• Document all procedures
• Review procedures for efficiency and effectiveness, adjust as necessary to optimize card operations
• Leverage technology whenever and wherever you can

2. Minimize your expenses

If you have not already done so, consider moving all your cards to OneBridge as your single provider. Simply put, having all your cards on a single platform can significantly reduce your costs, since you benefit from:

• economy-of-scale (volume) pricing
• elimination of redundant interface costs
• operational efficiencies, because your staff works with only one solution set

It also provides OneBridge with an integrated view of cardholder activity, which improves your risk management capabilities and understanding of cardholder behavioral patterns.

3. Chart a course for growth

Many institutions have recently raised card fees and/or interest rates. Their cardholders aren't happy about it. This represents a new, and growing, opportunity for your institution. Now is a good time to develop a step-by-step plan for reaching out to these people and adding them to your card program.

OneBridge Can Help

If you uncover specific operational issues, start by calling OneBridge Client Service. We have worked with numerous institutions and can suggest time-tested, proven solutions.

If you need an independent third-party review of your card operations or you'd like help developing a card program growth strategy, OneBridge can refer you to a consultant who has helped other OneBridge clients.
                                                                                    
Robert (Bob) Hill, of Hill Consulting Company, has extensive experience in the financial services industry with a focus on retail delivery and credit/debit/ATM card programs. Bob has worked for and with both banks and credit unions. He is equally proficient in both operations and marketing of card programs. He can assist you with streamlining processes and procedures to minimize risk and maximize efficiency. He can also help you develop strategic and tactical plans for card program growth. If you would like an introduction to Bob, just contact Nancy Linxwiler (214.559.9878 or nlinxwiler@onebridge.com) and she'll be happy to connect you.

The Bottom Line

• Improve your efficiency ratio
• Reduce your risk
• Reduce your expenses
• Increase your revenue
• Improve profitability
• Grow your program without adding staff
• Prevent regulatory issues

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From Thanksgiving through the middle of January, you can expect more transactions per cardholder, more transactions at specific merchants and higher-dollar transactions overall. Your risk management parameters should support, not hinder, this normal and expected increase in cardholder activity.

If you haven't already done so, consider temporarily relaxing your parameters in three key areas to accommodate your cardholders' seasonal shopping:

• Stand-in Processing
• Velocity Monitoring
• Real-Time Authorization Filters

Relaxing your risk management rules helps you ensure that:

• Cardholders can quickly and easily make their purchases, and
• Staff does not spend excessive time investigating transactions that appear to be suspicious, but are not.

If you need assistance in adjusting your parameters, feel free to contact OneBridge Client Service. We will be delighted to review your parameters with you and recommend adjustments to accommodate seasonal activity. Don't delay! Changes to your OneBridge limits can be completed in as little as one business day.

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Visa News

Visa shares get S&P 500 bounce

BOSTON (MarketWatch) -- Shares of Visa Inc. rose 4% in premarket trading Monday, gaining on the payment processor's impending inclusion in the widely followed S&P 500 Index, while an analyst upgrade also spurred the stock. Click to read entire article.

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Client News

Once again, OneBridge clients have been generous in supporting the needs of their communities.

Quincy Credit Union recently partnered with Quincy Public Schools and local businesses to provide 500 filled backpacks to the students at Clifford Marshall Elementary School and fifth grade students at Point Webster Middle School.

Greenwood Credit Union sponsored the Rhode Island Senior Olympics and was proud to announce that two of their local residents captured medals.

Heritage Federal Credit Union Board of Director JoAnn Jacob Krantz received the designation of Certified Credit Union Volunteer from the Credit Union National Association (CUNA) Volunteer Certification Program.