Legacy Core Systems Often More Bang Than Whiz: Opinion
We’ve heard it all before – new technology trumps old "legacy" technology. But if credit unions regularly upgrade their software and hardware, why do so many credit unions still rely on technologies that were developed in the 1970s?
Many credit unions will argue that their technology is brand spanking new. They’ll even prove it by calling up a slick loan origination system on their tablet. But dig a little deeper and you will discover that the credit union’s whiz-bang functionality depends on ancient technology staggering around the basement. Too often, it’s got more bang than whiz.
This is a far cry from legacy systems which require a separate interface for every new capability. With legacy systems, credit unions find the quality of service depends on the quality of the interface. No wonder much of the upgrade work for legacy systems revolves around interfaces.
In spite of all the benefits of new technology, many credit unions continue to avoid the inevitable core system conversion. We hear of institutions hunting for processes that can be shifted off of the core to separate systems. While that sounds brilliant in theory, it stumbles in practice.