The FLEX Connexion Blog

6 Reasons You Should Change Your Core System and 3 Reasons You Shouldn't

Written by Preston Packer | Jun 2, 2017

Are you a coin tosser?  Horoscope reader? Eenie-meenie-miney-moe'r? Whatever your preferred method of making a decision between equal contenders, there are certain matters that require more in-depth research during the decision making process.  When it comes to a credit union core conversion, most will agree this is one of the most crucial decisions within a CU. And while it is doubtful any would leave this decision to chance, there are many around the country who stick with their existing credit union core processor because they do not recognize the signs that they should leave. So, should you stay or should you go? Here are some reasons to consider before embarking down the path of indecision:

Reasons you should change your core:

  1. Costs - If the terms keep changing and fees keep increasing unjustifiably, you may want to consider a core system review. Avoid contract entrapment and check your agreements. In recent years, many core providers have not only employed but embraced a staggered contract strategy in a deliberate effort to entrap clients.
  2. Unsatisfactory technical support - If you've experienced a breach, constant outages or configuration mishaps after an update and rather than solving the issue you spend hours on hold, you should research alternatives. 
  3. Distrust - Do you find yourself wondering if your account manager is feeding you mistruths to cover up mistakes, or perhaps you aren't convinced they fully understand your issues? Find your peace of mind and begin the steps to conversion.
  4. Development Halt - If your core is stuck in the stone ages and does not have development plans to keep you on pace with the market and competition, consider a change.
  5. Non-Compliant - Your core is to blame for compliance on exams and audits?  Seek a core conversion. This is too important to risk losing a charter and paying fees.
  6. Inefficient - If your core's outdated system keeps your staff from being productive, you should change your core. 

Reasons you should stick with the core you are on:
  1. Established Relationship of Trust - Time builds trust, and this is something you cannot buy, nor achieve instantly. If you have this level of trust, and it extends across all aspects of your working relationship with your credit union software parter, there is probably not a need to look elsewhere. You can't put a price on peace of mind when it comes to your technology.
  2. Value provided > Cost of system - A core that allows you to provide members with innovative solutions and is continually advancing their system to help you better serve your members adds value for both your credit union and the member. You should be able to clearly see the value you're paying for. 
  3. Key ratios are improving - Improvement is always a reason to stick around but even more so when it pertains to key ratios. Your credit union software should contribute to key ratio improvements and lead to growth. 

Download the FLEX Efficiency Case Study to see how a small Oregon-Washington credit union was able to use internal efficiencies to hit new heights.