A San Antonio bank that primarily serves military service members and their families has established an agreement with the UPS Store to accept check deposits, including at three stores in the Wichita area.
USAA Federal Savings Bank said the three local UPS Stores — 6505 E. Central, 2250 N. Rock Road and 8918 W. 21st St. —are among more than 1,900 in the U.S. that will have equipment enabling its bank customers to remotely deposit checks.
USAA said its Easy Deposit service does not require customers to give out their banking information to UPS Store employees. The bank said USAA customers only have to provide a debit card to access the system and hand the checks to the clerk. They are processed through a check reading machine, and the voided checks are handed back to the customer.
USAA spokeswoman Danielle Long said the bank has customers in the Wichita area, though she would not disclose specific numbers.
USAA does not have any branches here, nor does it in most states. According to Federal Deposit Insurance Corp. data, it operates four branches: three in Texas and one in Colorado.
It has $48 billion in assets and ranks 28th on the FDIC's list of top 50 commercial banks and savings institutions by total domestic deposits.
Banking consultant David Kerstein said USAA operates in a similar way to ING, using the Internet as a means of delivery for its products and services.
"USAA has done a fantastic job in terms of being innovative and finding ways to serve their customer base," said Kerstein, president of Peak Performance Consulting Group in Austin, Texas.
He said this is the first instance he's aware of in which a bank has signed an agreement with any retailer allowing it to use stores to make bank deposits.
USAA doesn't represent a threat to local banks and deposit market share, at least immediately, Kerstein said.
"I think that USAA represents a trend that's coming," he said. "Essentially what they are doing, in being able to provide service to people without having to go to the bank, that is certainly a trend that is increasing and that you'll continue to see.
"It certainly does raise the fact that bank branches are expensive."