Around 10% of credit unions looked to upgrade their core bankingsystems last year, marking a significant increase from thehistorical percentage average of 4-5%, according to two new reportsfrom Boston-based financial research and consulting firmCelent.
|Credit unions are trending toward the cost-effectiveness andefficiency of hosted or service bureau core banking solutions asthey lack the resources to run robust in-house systems, Celentsaid.
|Contributing to the hosted solution trend is the desire amongCUs to eliminate the technical responsibilities of maintainingin-house solutions. The firm also found that hosted solutions arecheaper than in-house solutions for small CUs and allow CUs of allsizes to better manage risk and more easily meet regulatoryrequirements.
|CUs are also choosing multichannel systems that provide optionssuch as ATM, mobile, Internet and IVR, as well as solutions withintegrated functionality such as CRM and business/mortgageprocessing automation, Celent said.
|“The core banking market for credit unions looks increasinglycomplex, with product sets and channel offerings becoming a cruciallandscape for competing in an ever-expanding financial servicesindustry,” Celent Senior Vice President Bart Narter said. “Creditunions are continually looking to maximize their product offeringswith more efficient and flexible core systems.”
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Natasha Chilingerian
Natasha Chilingerian has been immersed in the credit union industry for over a decade. She first joined CU Times in 2011 as a freelance writer, and following a two-year hiatus from 2013-2015, during which time she served as a communications specialist for Xceed Financial Credit Union (now Kinecta Federal Credit Union), she re-joined the CU Times team full-time as managing editor. She was promoted to executive editor in 2019. In the earlier days of her career, Chilingerian focused on news and lifestyle journalism, serving as a writer and editor for numerous regional publications in Oregon, Louisiana, South Carolina and the San Francisco Bay Area. In addition, she holds experience in marketing copywriting for companies in the finance and technology space. At CU Times, she covers People and Community news, cybersecurity, fintech partnerships, marketing, workplace culture, leadership, DEI, branch strategies, digital banking and more. She currently works remotely and splits her time between Southern California and Portland, Ore.
