When selecting a core provider, there is more to consider than features and functionality. There are quantitative factors that should be considered, and these numbers will help guide a credit union's decision in the selection process. Choosing the right core for your credit union can be overwhelming, but looking at the numbers and data can help the right core platform become more obvious. When shopping for core systems, obey the numbers, and your credit union will find the right fit.

A core system and all its ancillary products will equip your credit union with the majority of the functionally you require. However, as new products and services become available, the core alone may not be enough to keep your credit union competitive with the largest financial institutions that compete for your members. Application programming interfaces (API) can bridge that gap, and provide access to new features that credit unions are seeking. Some CUs are skeptical of APIs for concerns of security but most would argue that the benefits outweigh the added risk. APIs allow developers to introduce more add-ons with features that may not be available with the core platform alone. Here’s why your credit union should open up to new possibilities through APIs.

In the realm of credit union core technology, there are some key data processors that are leading the pack. It’s no surprise that according to Callahan & Associates 2019 Core Report, the two biggest providers in the industry have continued to hold a lion share of the market with 42.9%, supplying core platforms to nearly 2,500 credit unions. As big players continue to grow, the number of credit unions has dropped. There are 219 fewer credit unions, year over year, totaling 5,596 for the industry as a whole (Q2 2018). Besides the "big two", there are other core providers in the industry that simply cannot be ignored. The top dogs typically cater to billion dollar CUs and even hold 83.3% of that market, but when it comes to small to medium-sized credit unions, niche core providers are making their impact. Here’s how some core providers add value and support for credit unions and their members. 

No doubt, you have had friends or neighbors talk about "cutting the cord." Fed up with the high cost of cable or satellite TV, and the poor customer service, coupled with the high quality of programs available via streaming services, people are making the switch. Talking to friends who have done this, you most likely have heard that the process of cutting the cord has not been easy. Getting out of TV service contracts, figuring out the maze of what streaming services are supported on what devices and which ones offer the programming their family needs. And not to mention the panic when they find out they have no way of watching the Super Bowl with their existing services! However, once it is all figured out, there is a freedom in having all the programs tailored to you, at a price that feels worth it, since you are only paying for what you want to watch. The process is similar to a credit union core conversion, albeit on a much different scale. The conversion process can last up to 2 years between the evaluation of different processors and the actual conversion. A core conversion is not a decision to be taken lightly, or prematurely. So, how does your credit union know when it’s time to switch? There are some telltale signs that indicate your CU might be overdue for a new system. If your CU is experiencing one or more of these issues, it’s time to cut the cord on your core data processor.

The core system is the foundation of all credit union operations. However, one system or provider is not likely to last a credit union’s entire lifetime. As credit unions grow and change, their technology needs from a core provider might also change. And if their current provider isn't willing to grow with them, it might be time to start a core system review and consider alternatives. There are many factors to take into account when looking into core system providers, however, the best core platforms will have a few key features in common. When choosing the perfect core data processor for your credit union, ensure these four features are included.  

Switching core providers is a huge undertaking. Whether your existing system is outdated, or your credit union is simply dissatisfied with its capabilities, it may be time to consider a new core provider. With so many providers on the market, it can be difficult to narrow down the options to a list of key players. Here are three ways your credit union can identify, rank and choose a new core data processor.

Bank Secrecy Act (BSA) compliance is an integral part of credit union compliance. While large organizations are usually the ones under fire for BSA violations, CUs are just as liable for anti-money laundering laws, and in case of compliance mishaps, the penalties can be severe. According to the Federal Financial Institutions Examination Council (FFIEC), those facing money laundering charges can face up to 20 years in prison and a fine of up to $500,000. Any property related to the criminal activity, including property such as loan collateral, personal property, and even entire bank accounts may be subject to forfeiture. Banks and CUs also risk losing their charters, and their employees can be removed and barred from employment in the financial services industry. If the thought of these repercussions causes you and your credit union panic, fear not. Credit unions with a BSA compliance program in place are well-protected from BSA violations. Here’s how your credit union can better conform to BSA rules and regulations.

HMDA compliance has been looming over credit unions for many years. It was actually enacted by Congress in 1975 but wasn't transferred to the Consumer Financial Protection Bureau until 2011. The financial industry has been revamping their loan processes in order to ensure compliance with recent and more rigorous adjustments to the regulation, but what exactly does that entail? Here is the download on recent HMDA announcements and how your credit union can remain compliant.

Electronic documents are a mundane yet integral part of the financial industry, as they improve operational efficiency, reduce costs and save paper for banks and credit unions. Members also enjoy the convenience they offer, as they are able to sign disclosures and send the document back from their mobile phone or computer. Electronic Signing is a key feature allowing members to agree to the terms of documents without a trip into their credit union's branch. Electronic signatures carry the same legal weight as paper documents thanks to the Electronic Signatures in Global and National Commerce Act (ESIGN), which went into effect on October 1, 2000. For this reason, eSignature is the preferred method for both members and CUs alike for its convenience. However, there are particular rules and regulations regarding ESIGN to which credit unions must abide. Here are important compliance guidelines to keep in mind when implementing eSignature options.

Ambien and Lunesta have met their match, and its name is Credit Union Compliance. Compliance is a topic at the top of any credit union leader’s mind as there are a lot of looming questions and concerns when it comes to compliance, and many credit union CEOs have endured sleepless nights worrying about their state of compliance. In the digital world, there are a varied and vast amount of risk factors when it comes to data security and more rules and regulations too. Here are 5 questions that keep credit union leaders up at night.