Credit unions are accustomed to a world where multiple vendor relationships are needed to achieve their business goals. Building the right offering of services for member's specific needs is necessary. But, an all-in-one solution hasn't always been in the cards - either the technology wasn't there or it was cost-prohibitive. Today, credit unions have options to bring core processing, loan origination, online banking, collections, and more all under a single vendor to enhance the member experience without sacrificing quality.
If credit unions want a truly custom solution, they may choose to source from individual vendors, looking for best-in-breed services that can be added as needed, or as budget allows. While using multiple vendors can ensure CU's are getting the individual services they want, it may create a lot of complexity managing various contracts and terms. It's a bit like playing Jenga, as you replace services and stack new ones on top, your system is not quite as solid as it was when you started. Pricing is also likely to be higher as there are no bundles or discounts when using a single service from a vendor. Data will unfortunately operate in silos, which will make serving members quickly and effectively, almost impossible.
The Add-On Solution
The next level of operations is contracting with a core processor that offers the ability to integrate with third-parties, which will lead to more data collaboration. This type of solution allows a credit union to pick and choose additional services from other vendors as the demand arises. However, this can still lead to siloed data if your core processor itself wasn't developed with enough power and functionality at the outset. It also can lead to a blame game if an issue arises, where it's unclear if the source of a problem is being created by the third-party or by your core provider.
The All-in-One Solution
Many core processors recognized this issue and began incorporating other proven service providers into their main offering. This ensures that the core is built to work with other services from the outset, minimizing learning curves and installation hurdles. Today's most forward-thinking core processors, like FLEX, can give credit unions the power of an "all-in-one-solution" with products and services that include centralized lending, digital banking solutions, operations, member services, a full document management suite and more, all under a single contract with a single vendor relationship.
Not only does this reduce the vendor management burden on the credit union, but with the right partner, a core processor will have the full picture of the CU's needs. They will be able to offer different solutions without the credit union having to do the legwork.
Choosing a single core provider with an all-in-one solution, that can be flexible with add-ons if needed, gives your credit union a one-stop-shop that can ensure your members get best-in-class, personalized service every time they interact with your credit union.
Learn how FLEX customer, Buffalo Metropolitan Federal Credit Union, used internal efficiencies to kick-start growth through expanding core-driven products and services, utilizing the newest technology to compete in the marketplace.
Download the case study to learn more.