Hosted Cores Gain Momentum Among Small CUs
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.
According to numbers provided to Credit Union Times by Callahan and Associates, 2,272 credit unions presently have hosted cores.
At least some experts believe Delaware State Police Federal Credit Union may be a trailblazer. And it won’t be alone.
Theresa Benavidez, president of Corelation, which has three clients running on a hosted version, said, “Security threats will force many credit unions to go hosted.”