We live in a time of technological wonder and change. Yet, many of today’s companies often pivot their talking points away from internal development, thus obfuscating the fundamental question and primary mission of any core: “How are you updating your core technology to keep my credit union relevant and competitive?”
Today’s credit union core providers should be engaged in the relentless pursuit of writing modern software using the latest tools for the express purpose of reducing cost and increasing efficiency for their credit union clients. Technology, if done correctly, should reduce operating expenses.
Just as every credit union is unique, core systems need to be adaptable in order to meet each credit union’s unique requirements. Open architectures support both remotely managed on-site solutions or data center cloud service environments, while also providing robust and open APIs. It’s common that credit unions will want to use dozens of modern fintech solutions, and partnering with a core that supports open APIs is a must. What makes advanced core providers different? It’s the decision to unearth their legacy applications and rebuild from the ground up. Crossing this Rubicon paves the way for both natively developed and third-party solutions to be seamlessly and elegantly embedded inside the core’s ecosystem, creating unmatched user-friendly workflows
How can your credit union future-proof your core?
Core advancements need to go beyond a generational epidermal layer. Channel container service framework technology is a level of engineering and innovation that is far from commonplace in the core credit union space. This requires the vision and courage unique to highly agile and nimble companies, free from the politics and risk-averse committee-driven organizations of today. We see this on the micro-level of so many ancillary fintech providers that complement core systems. This begs the question: Why should this not be the case for the core providers themselves?
Operational efficiency is essential to your credit union’s survival. Credit unions need to identify unique, revolutionary, and evolving modern core systems built with the same development technologies and tools used by the newest fintechs of today. Nimble agility combined with the science and art of efficiency is the greatest weapon an organization can bring to bear against the competition. Like David and Goliath or Sir Frances Drake and the Spanish Armada, putting on the same armor as your competition by adopting their technology with its associated high costs will not yield a differentiating presence in the marketplace. Speed and efficiency win the day.
Today’s technology landscape has set the stage for arguably the most advanced, scalable core solutions in our industry’s history. It’s imperative then for credit unions to understand that core modernization should be no different from other recent fintech advancements. Core systems set the foundational layer for member and credit union growth.
Functions like mobile banking, digital wallets and online lending have skyrocketed in popularity. For many credit unions, this rise in the use of these features could trigger the need to reevaluate the technologies they use and offer along with their digital strategies. It also means that in this competitive and turbulent climate, using the right core system technology is essential for credit union’s survival.
When credit unions utilize an adaptable, scalable core system, operating expenses are reduced, the efficiency of their services increases all while enhancing relationships with members. As we head into 2021, no one can predict the future of banking. But it is clear that if credit unions partner with a core system that is in constant pursuit to innovate, develop and provide the latest technologies, this greatly strengthens their position in the financial industry and credit union space.
Download our feature article from the 2021 Callahan Supplier Market Share Guide to learn more about how future proofing your core with FLEX will grow your credit union.