Small CUs Turn to Hosted Cores: Print Preview
- About 30% of CUs use a hosted core.
- Small credit unions particularly find many benefits besides cost savings.
- If CU regulators push for off-site cores, the rush will be on.
Do you want to know a secret? Roughly three in 10 small credit unions do not maintain their core systems in-house, instead using “hosted” or “service bureau” solutions where the core is in fact maintained off-premises by a third-party vendor.
Many processes got simpler with the move to a hosted core. ACH and share-draft processing, for instance, had been done in-house. Now the host handles those chores for the institution. A lot of IT drudgery, applying patches and quick fixes, also stopped, as that work got outsourced to Symitar.
Delaware State Police FCU elected to keep its IT staff count unchanged. Said Jackson: “We moved them around. One is managing the call center. We could put more bodies into services that touch the member.”