Changing Systems: One in 20 Credit Unions Making DP Conversion This Year

WASHINGTON – About one in 20 credit unions in the United States will be changing core processors this year, according to Callahan & Associates. The advisory firm is basing that figure on NCUA call report figures which showed that 231, or 2.5%, of all credit unions said they would be undergoing such conversions in the first six months of 2003. “If the six-month horizon is accurate then doubling this number would suggest that 470 credit unions are in a conversion status over a one-year time period,” said Callahan corporate associate Niral Patel. “This number equates to about 5% of all credit unions, which is very close to the rule of thumb about the percentage of credit unions open to a DP change in any one year,” she said. A need for “open system” flexibility, expanded Internet offerings and internal network expansion are among the factors driving such a crucial strategic move, Patel says. Callahan & Associates will be hosting a Webinar on host system data processor assessment on Thursday, Sept. 18, at 2 p.m. EDT. For more information, contact Patel at (800) 446-7453, ext. 128, or at [email protected]