In today's technology-driven environment, credit unions find themselves managing numerous technology providers for various aspects of their operations. No doubt one of the most important vendor relationships your credit union has is with your core technology provider. If you have partnered with a credit union core processor that lacks built-in products and requires additional 3rd parties, your list of vendors could be especially long. In the haste to get new technology to your members in today's competitive credit union industry, don't make the mistake of not properly vetting the solutions you are considering and the companies behind them. Before you select what technology providers you do business with, consider these 5 things:
1. Due Diligence: Don't be sold on flashy sales pitches and promises of the latest and greatest credit union technology. Research your top picks. Find out how long they've been in business, who they've worked with successfully, and what their plans for growth are for the foreseeable future. Go to social media and search for the company and find what others have said about them. Ask for financial statements to be sure the company is stable and healthy. Know who you're really working with and how dedicated they are to growth. You want to be sure they'll be around for the length of your contract.
2. Proof of Product Success: Don't take their word that the software improves efficiency. Ask for a user list of credit unions near your size and find out how the software has worked for them. Also Look for case studies on the vendor sites and find out how they solved problems for other clients. Don't hesitate to check in with clients from the case studies.
3. "Me Too" Companies: 'Me too' marketing takes place when a company offers a product which is similar to its competitors. Often times there are differentiating factors that aren't easily seen. Lower prices are typically a 'me too' company's strongest argument. Don't always fall for the lower price, it usually means the software provider cut corners during product development.
4. Compliance: Just as your credit union has to consider compliance when it comes to technology (disaster recovery, cyber security, etc.), be sure your vendors are practicing in a compliant manner, even if they do not face the IT examinations and audits your credit union faces. You want a partner who understands how important this is by putting it into practice themselves and incorporating compliance into their products so you don't have to.
5. Robust API Toolkit: An application product interface (API) is a set of tools that govern how software compenets should interact and are key to providing the best possible outcome when two technology products are combined. A good API makes it easier to develop a program by providing all the building blocks necessary for product integrations. It is imperative that your technology provider offers a robust API with corresponding documentation. While ample built-in products are necessary for a seamless deployment, technology today will require some vendor integrations. If your credit union software is limited to built-in products, your member services will be limited.
Before you bring in a new partner for your credit union technology, do the leg work. Take the time to find out if they're a company you trust with a product that works. The time you take on the front-end to do your research is going to pay off in spades on the back-end. A failure to properly vet your provider can be fatal to the success of your credit union.
