SEATTLE–The purchase of a new core system is one of the biggest expenses any credit union faces. But what many find most aggravating are the conversion fees that must be paid to old and new provider alike, observed one person here.
“No credit union CEO likes to buy a core, they only do it because they have to,” CUProdigy CEO Anthony Montgomery said during his session at NAFCU’s Annual Conference titled “Group Therapy for Your Core: 5 Strategic Pain Points.”
A group of approximately 50 credit union executives participated in the interactive session, discussing how their existing core often interferes with their ability to execute on strategic plans.
During the discussion it was cost that was recognized as one of the most contentious strategic pain points, but it wasn’t the only one. Complete access to member data was another.
One credit union exec said his core provider didn’t permit him to perform analytics on his own data, hampering his strategic decision-making. Judging by the significant number of heads nodding along during the session acknowledging his comment, this wasn’t an isolated issue.
“We’ve presented this session at other events, and each time it has stimulated critical strategic thinking among credit unions about their core,” Montgomery said. “And the interactive structure is important, I think. This is a collaborative industry, so it’s valuable to facilitate sharing among credit unions so when it comes time to renew their core contract, they can make the best decision for their strategic plan.”
The other three pain points were third-party integrations, efficiency and support/enhancement requests.