It is one thing to boast about communicating with users, it isquite another to actually build a core processing system usingcustomer collaboration, such as Layton, Utah-based CUProdigydoes.

The foundation of CUProdigy's capabilities centers around itscloud infrastructure and cloud-only implementation method, whichaccording to Anthony Montgomery, CEO of the CUSO, allows them to bemore nimble and agile. “This, in turn, makes it easier to implementnew features.”

Montgomery pointed out the browser-based software does notrequire credit unions to update and/or deploy. “We alsohandle all the server software in the cloud. If we hadtraditional legacy architecture, it would be much harder for us todevelop and implement new features.” He added CUProdigy could notrelease updates frequently if burdened with legacyarchitecture.

Montgomery said it makes deployment simple by releasing smalleramounts of code. “The credit unions actually prefer CUProdigy'smore frequent releases. One obvious reason is they do not have towait a year to receive something that can benefit them today. Thiskeeps their code nimble.” In addition, it is easier to understandand manage several smaller releases of code as compared to a largeannual release all at once.

As a CUSO, the owners get to determine the direction andprioritize what goes into development for future releases. Theseupdates to their core processing system all begin with feedback fromtheir credit union base.

“First, it's important to realize that feedback mechanisms mustalign with a core-software provider's release mechanisms. Forexample, a high-frequency feedback cycle coupled with alow-frequency release cycle does not mesh well. Release cyclefrequency further drives business philosophy decisions,” Montgomerysaid. “CUProdigy has deliberatively chosen to be a nimble, agilesoftware development company. As such, our release capabilities arebuilt around frequent releases and we release 11 times a year.”

Second, CUProdigy has developed feedback mechanisms that supportthese smaller, more frequent code releases. They use three primaryfeedback mechanisms.

Roy MacKinnon at president/CEO at the $200 million Lancaster,Calif.-based Edwards Federal Credit Union, noted that even thoughhis credit union just recently signed on with CUProdigy for a coreimplementation about a year from now, it experienced firsthand thefeedback process. “It's a very collaborative core as compared toother for-profit cores.”

MacKinnon explained he has had two experiences with CUProdigy'scooperative approach to date. One was during the screening processduring Edwards' new core search last spring and summer. EventuallyEdwards signed a contract with CUProdigy in August 2017 and isscheduled to convert in October 2018.

Read the full article in the Nov. 1 edition ofCUTimes.