Four Letters. Infinite Potential.

Trona Valley Federal Credit Union

Review of Data Processing Contract Uncovers Substantial Savings and an Unexpected Bonuse

Located in Green River, Wyoming, Trona Valley Federal Credit Union provides financial products and services to individuals and families who live, work, worship or attend school in six Wyoming counties, as well as four counties in Utah.

Interest in better data processing contract terms leads to expert review
As part of its ongoing efforts to operate more efficiently and provide members with world-class service, Trona Valley began the process of negotiating the renewal of its data processing contract in November 2012. After receiving an initial proposal from its existing vendor, Trona Valley CEO Marsha Tynsky determined that it was time to find out if the credit union was getting the best deal in terms of price and service.

“I had recently met with JMFA about the products and services they offer to financial institutions and discovered that they provide contract review and negotiations consulting,” said Tynsky. “I thought this would be a great opportunity to have professional input on our existing data processing contract, since we had been with the same vendor for so long.”

As is often the case, as Tynsky and the credit union’s COO were reviewing the initial vendor contract, they realized that they didn’t quite have the background knowledge they needed to fully determine if they were getting the most benefit from their vendor. “Since we only had our expiring contract to use as a comparison, we didn’t know what to ask for, nor did we have the time to spend on the negotiations process,” she said. “With JMFA’s extensive experience, they were able to take the reins and explain to the vendor exactly what we needed in the contract package.”

Expert negotiations result in immediate savings, improved terms and an unexpected bonus

As a result of JMFA’s involvement in the negotiations, the credit union experienced a savings of $770,000 over the five-year contract term with no annual price increase. Plus, they received several thousand dollars in credits for future products that they plan to implement in the next few years. “We wouldn’t have known anything about the additional credits if we had negotiated the contract ourselves,” Tynsky added.

In addition, JMFA negotiated a new flat, per-member pricing structure to replace the old terms that priced every service individually. “Previously, every time we wanted to add a product or service it was priced separately so it was difficult to determine the per-member cost,” Tynsky said.

“The results were much more than we ever expected,” she continued. “We knew we would be able to find savings due to the fact that technology costs are less than when we first contracted with the provider for data processing services. The great thing is JMFA was able to get us the new pricing right away; even before the existing contract expired. Plus, they were able to negotiate a signing bonus after we had been with the vendor for eight years; we never expected that!”

Prior to engaging JMFA to assist with the contract review and negotiations, Tynsky was considering how the credit union would deal with the possibility of changing vendors if better contract terms were not reached. Thanks to JMFA’s expertise, making that change was not necessary. “The contract JMFA negotiated worked for us,” Tynsky explained. “Our staff was spared the additional work involved in converting to a different system, our members didn’t have to go through the confusion this type of situation creates and we were able to maintain a positive on-going relationship with our long-time vendor.”

According to Tynsky, having JMFA’s experts review the credit union’s data processing contract was a tremendous stress reliever. “The process was smooth and efficient, and I can’t say enough about the great service provided by our JMFA contact, Jim Cullen. He knew just what to ask for and kept us apprised of the situation throughout the process.”

She continued, “Now I feel as though I have an avenue for making sure the credit union is getting the best service at the best price for other important contracts in the future. I wouldn’t hesitate to work with JMFA to help us again. And, I would recommend their contract review and negotiations expertise immediately to another institution.”

After successful contract renegotiation, credit union focuses on other areas of improvement
With the positive results Trona Valley experienced in the contract review and negotiations process, the credit union looked to JMFA for additional consulting. With more than 1,500 successful customized installations of JMFA OVERDRAFT PRIVILEGE® and established results, Trona Valley is confident JMFA will assist them with implementing a compliant, member-friendly overdraft program.

About JMFA

JMFA is a leading provider of profitability and performance-improvement consulting. For more than 35 years, JMFA has been recognized as one of the most trusted names in the industry, helping financial institutions reach their goals. JMFA is recognized for earnings enhancement and expense control programs, executive placement, as well as product, service, pricing and technology-improvement consulting. Simply stated, JMFA’s programs and services are designed to increase income or reduce expenses. JMFA is proud to be a preferred provider for performance-enhancement consulting services among many industry groups.

Read more Case Studies