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.
This preview from next week's print edition continues tech writer Robert McGarvey's look at the changing core processing industry for credit unions.
Still suffering from the bite of losing all their Western Corporate FCU capital in 2009, credit unions report they are still capital shy when it comes to replacing corporate services.
WesCorp members seek new home for services, shy from staking new capital. Get the story in next week's print edition today in this print preview.
More than 300 credit unions deposit capital with $2.2 billion Texas corporate as transition also begins from U.S. Central ACH service.
Integrated share draft processing has been added to the FLEX core processing platform from CMC, the Sandy, Utah, company said.
If a federal credit union offers services such as lines of credit, share-draft processing, check collection, ACH origination and receipts to its members, it can also provide them to other credit unions.
The NCUA has added several correspondent services to the list of incidental powers that federally chartered credit unions have.
The $327 million Nutmeg State Federal Credit Union in Rocky Hill, Conn., has signed up for share draft processing and image cash letter collection services from Vertifi Software LLC.
Credit union owners and clients of ProDraft Services Inc. will have access to correspondent banking services through the CUSO's partnership with Cincinnati-based Fifth Third Bank.