A credit union core processor refers to all the back-end IT systems that help to not only allow a credit union to function but also continuously process all the financial activity within that environment as well. To put it another way, it is the heart of the entire credit union and is an asset of fundamental importance.

If you had to make a list of all the qualities that are essential to the success of a modern credit union, its technology stack would undoubtedly be right at the top.

By taking a close look at the top core providers for credit unions, it becomes clear what many of them have in common. It also helps underline important trends about the industry in general that can be used as inspiration for your credit union's own success in the future.

A recent study indicated that in the first half of 2022, total income for federally insured credit unions reached an enormous $18 billion. While the sector has certainly experienced its ups and downs as a result of major shifts brought on by the COVID-19 pandemic, it can also be said that credit unions are becoming a top choice for consumers over traditional financial institutions with no signs of slowing down anytime soon.

Whenever it is determined that the time is right for a credit union core processor change, it's always a fairly malleable and intricate process. After all, you're talking about the technological foundation upon which your very organization has been built. How you provide newer and innovative services to your members. How you build and maintain ongoing relationships with those members. This is very much a situation where you don't want to leave anything to chance.

As is true with any type of digital transformation, converting from an older core platform to a new one can often seem like an uphill battle for your credit union. But not only is it necessary, but in some situations, it is explicitly so--like if you're currently working with two or more disparate platforms that make the lives of your employees and members needlessly difficult on a daily basis.

In the fast-paced, tech-driven world that we're currently living in, the core system truly is at the heart of any credit union. Not only is it this bedrock of technology that allows employees to better communicate and collaborate with one another, but it also helps to facilitate the most important goal of all: bringing newer, better, and more forward-thinking services to members everywhere.

One of the most important things to understand about operating a credit union is that increasing efficiency is usually less the product of any one major move and is more about a series of smaller and more strategic ones.

When it comes to operating a modern-day credit union, one critical idea to understand is that any investment in technology that reduces costs needs to simplify efficiency at the exact same time. Not only is this crucial for keeping up with an ever-changing marketplace, but it also assists with long-term stability as well.

When it comes to operational efficiency, credit unions have room for growth. According to a McKinsey & Company study, credit unions are repeatedly more inefficient when compared to similarly sized banks. The causes of this operational efficiency variance can range, but it almost always boils down to certain processes draining valuable resources. Ask yourself: