• Card Network Choice & Branding RFP Management and Contract Negotiation
• Payments Processing Vendor Selection and Negotiation of Terms Resulting in $3+ Million in Savings
In the digital age, credit unions face many operational challenges. To maintain a competitive edge, credit unions must make decisions that deliver the best experience and value to their members.
HAPO Community Credit Union, headquartered in Richland, WA, was no exception as they looked to redefine their digital banking platform and tackle key contract renewals. Since 2020, SRM and HAPO have forged a strong relationship, with SRM assisting with multiple projects for the credit union. SRM has identified core opportunities for the credit union to implement, yielding significant savings and growth opportunities. The initial projects SRM managed included the renewal of HAPO’s card processing contract and a tactical digital banking platform renewal. These projects have aligned the credit union’s growth goals, improved member benefits, and saved over $30 million.
Initially, the credit union contacted SRM to be the consultant in their credit processing contract renewal. SRM went to work, reviewing the current contract and establishing itself as a valuable strategic partner, leveraging a strong relationship with the existing vendor. SRM parlayed its contract negotiation benchmark data and quickly identified areas of improvement for HAPO.
SRM noted that the credit union’s contract lacked a solid service level agreement, clarity regarding issue resolution, and vendor responsiveness to requests. SRM worked to strategically correct these issues and foster a positive outcome for the credit union. Based on industry knowledge, expertise, and vendor relationships, SRM secured favorable terms for HAPO.
The outcomes of HAPO’s credit processing contract renewal solidified the strategic partnership with SRM and resulted in additional projects. The next project was benchmarking a digital banking platform renewal that would unlock extra savings for HAPO and more benefits for the credit union’s members. This has led to a much larger, full-scale Digital Banking iniative, which included a comprehensive RFP process that places high focus on each individual component of a digital banking environment (online banking, mobile banking, etc). This apples-to-apples approach allows SRM to utilize their robust financial models to ensure the credit union is receiving the most value.
Of the projects SRM contracted with HAPO, tackling the debit card branding and processing contract renewal loomed the largest. SRM consulted with HAPO and recommended issuing an RFP to better understand the vendor playing field. This yielded evaluations of the many available market alternatives.
Ultimately, this RFP turned into a competitive negotiation and lasted multiple rounds. After reviewing the various responses and proposals, the team at HAPO decided to transition to a new provider and processor. SRM was able to broaden the scope of a single renewal and secure a more significant and comprehensive contract that saved HAPO over $30 million. HAPO now sees a favorable contract relationship and stronger protections regarding service levels and interchange protections.
“The SRM team has the experience, skillset, and ability to provide big dollar savings. We have seen the significant financial impact SRM has made on our business,” noted Scott Mitchell, EVP and CFO of HAPO Community Credit Union. “They are very easy to work with, and the process is simple and efficient.”
Following the success of these projects, HAPO is partnering with SRM to tackle the RFP process for a larger-scale Digital Banking transformation project. In addition, HAPO is considering SRM’s Account Boost, a strategic growth platform. Insurance contract renewals are also part of the ongoing discussions between SRM and HAPO.
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