NEW YORK—A new banking platform is expected to help community development credit unions expand their products and reach.
The National Federation of Community Development Credit Unions has formalized an agreement with EPL, Inc., Birmingham, Ala., to develop “CU Impact,” a shared core banking platform to scale up the delivery of innovative products and services offered low-income designated CUs.
The agreement grows out of a two-year Federation study supported by Citi Community Development.
“This technology platform will accommodate ongoing innovation, facilitate collaboration and shared services, generate growth and ultimately increase the impact of credit unions working in low-income and underserved communities. The platform is built specifically for Federation Community Development Credit Unions and will be powered by EPL, a CUSO best known for its pioneering i-POWER system, long recognized by users for its flexibility and seamless integration with other software providers,” the Federation stated in a release.
Earlier this year, Dedagroup SpA, an Italian firm whose systems power the Trentino cooperative banking model, purchased a majority of EPL shares, recapitalized the CUSO, and propelled enhancements to facilitate shared service models.
"This is the next chapter in the evolution of community development credit unions” said Federation CEO Cathie Mahon. “With the ability to integrate new products and services into the core data system in an affordable and timely manner, CDCUs will be able to remain nimble and respond rapidly to community needs. We will be able to develop asset-building and pro-consumer products and provide a consistent level of service, creating opportunity for members across the nation. This is a huge win, not just for credit unions, but for all of our partners working in low-income communities."
The Federation noted that CDCUs have been challenged to provide their services at a scale to match the magnitude of demand.
“With generous support and thought leadership from Citi Community Development, the Federation engaged in an in-depth feasibility study that included a comprehensive international search for a technology partner that shares the Federation vision of a fairly priced system that supports the Federation's mission and allows for innovative product development,” the Federation stated.
"Through thought partnership and support for the Federation's vision, Citi aims to expand access to economic opportunities. This initiative will lead to banking solutions that can address common obstacles to credit union growth and expand the range of affordable financial products and services available to the community," said Bob Annibale, global director, Citi Community Development.
The Federation said the CU Impact core system seeks to achieve three main objectives for the CDCU movement:
- Facilitate the adoption of new product features and system enhancements tailored to credit unions serving low-income communities.
- Track and report on community development outcomes and impact.
Allow for the development of a shared back-office platform that creates economies of scale and efficiencies as well as consistent product.