Consider the evolution of how money is stored: First, it was put in a box in our home, then moved to a bank teller behind some bars, followed by storing it in huge vaults with giant doors and locking mechanisms, then into an ATM for easier access, and now it's just 0s and 1s transmitting through the internet. As times have changed, we've adapted to how we store and access our hard-earned dollars. People once demanded to know that their money was locked up safe but, as technology advanced with the internet and smartphones, we now want the ability to access and transfer it from wherever we are, whenever we want, however we want to. To keep up with the needs and expectations of credit unions and their members, core systems have had to evolve and adapt as well.

In this digitally competitive day and age, where everyone wants and expects an answer “yesterday,” being efficient is imperative. The mortgage market in particular has grown more and more crowded as home prices soar and interest rates continue to decline. In fact, Interest rates have been dropping since late 2018, recently dipping below 4% in June for a 30-year mortgage, the lowest in about two years. Leveraging your credit union's technology to streamline the loan decision-making process can reduce the turn-around time for the member's application, provide members answers quickly, and potentially be the difference in whether a new loan closes with your credit union or at another financial institution.

A core system and all its ancillary products will equip your credit union with the majority of the functionality 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.