For core system vendors, it's one thing to boast aboutcommunicating with users and quite another to actually build a coreprocessing system through customer collaboration, as the Layton,Utah-based CUProdigy does.

The foundation of CUProdigy's capabilities centers around itscloud infrastructure and cloud-only implementation method, which,according to CUProdigy CEO Anthony Montgomery, makes the systemmore nimble and agile. “This, in turn, makes it easier to implementnew features,” he said.

Montgomery pointed out the browser-based software does notrequire credit unions to complete updates and/or deployments ontheir own. “We also handle all the server software in the cloud. Ifwe had traditional legacy architecture, it would be much harder forus to develop and implement new features,” he said, addingCUProdigy could not release updates frequently if it were burdenedwith legacy architecture.

Montgomery said deployment is simplified through the release ofsmaller amounts of code. “The credit unions actually preferCUProdigy's more frequent releases. One obvious reason is they donot have to wait a year to receive something that can benefit themtoday. This keeps their code nimble.” In addition, it is easier tounderstand and manage several smaller releases of code compared toone large, annual release.

As a CUSO, CUProdigy's owners get to determine direction andprioritize what goes into the development of future releases. Coreprocessing system updates all begin with feedback from its creditunion 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; it uses three primaryfeedback mechanisms.

In one process, focus groups collaborate together on specificthemes such as lending, operations or accounting. They scrutinizenew ideas, help design new functionality and prioritize work.“CUProdigy does not lead these groups. That is an importantdistinction. CUProdigy only provides the forum and logisticalsupport,” Montgomery said.

These self-governed groups are open to any credit union, andcredit unions may participate in as many as they desire. Groupselect a chairperson from one credit union, set their meetingschedule, determine their meeting protocol and prioritizationmethods, and run their own meetings. These focus groups alsoprocess their own enhancement ideas. Most credit union participantsare individual contributors, and no CEOs participate. CUProdigysimply incorporates the output of these focus groups as input intowhat Montgomery calls its “development sprints.”

Other primary feedback mechanisms are the ideation sessions thattake place whenever CUProdigy credit unions get together, such asat its annual meeting. In these sessions, participants set up ininformal groups of three to five people. The only rules are asfollows: A time limit applies, teams must write their ideas on apost-it note (only one idea per post-it note is permitted), teamsmust discuss their idea with the group as a whole, and at the end,everyone “dot” votes for their top ideas. In dot voting, eachparticipant decides how to ration five votes across all ideas usingdot stickers or markers.

The last primary feedback mechanism is the use of softwaredemonstrations during the development cycle. “In this forum,developers show the progress of their enhancements to CUProdigycredit unions, which provide feedback. The feedback can range fromfield labels to button locations to completely new ideas on how toimprove the functionality,” Montgomery said.

The focus groups vet the enhancement requests themselves. Thereis also screening criteria for ideas. For example, CUProdigy'sbusiness philosophy is to create an open ecosystem for its coresoftware to benefit all credit unions. “This means we leverage ouropen API and do not charge credit unions for third-partyintegrations,” Montgomery noted. He added if a credit unionrequests something counter to its business philosophy, either thefocus group or the CUSO would decline the request. “This also meanswe won't likely develop our own mobile banking or online bankingfunctionality because we choose to integrate with other vendorsthat specialize in that type of software.”

The other deciding factor is the level of effort required. “Weprovide effort levels to the focus groups so they can manage thevalue received per se. If one request will take three times as longas two other requests, that focus group may decide it would ratherhave the two smaller requests now instead of the one largerrequest.”

Montgomery noted typically the top items from the focus groupmeetings become incorporated into the next available developmentsprints. “These then flow as per the normal development and releasecycles.”

Roy MacKinnon, president/CEO at the $200 million, Lancaster,Calif.-based Edwards Federal Credit Union, whose credit union justrecently signed on with CUProdigy for a core implementation, noted,“It's a very collaborative core as compared to other for-profitcores.”

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. Edwards,which had been on the same core for 16 years, was seeking newtechnology that would improve both the member and employeeexperience.

“We could all tell that not only were they credit union people,it was obvious the Prodigy team really enjoyed what they were doingand really believed in their core solution,” MacKinnon said.

The credit union's staff noticed during an initial meeting thatCUProdigy was open to suggestions that would help Edwards, such asone that would make it easier for its frontline staff to understandthe profitability of specific members. By round two, CUProdigy hadalready put the idea in development and made it available to anyorganizations that wanted to use it. “That was really eye openingbecause we didn't hear anything like that from the other cores thatwe interviewed,” MacKinnon maintained.

Edwards signed a contract with CUProdigy in August 2017 and isscheduled to convert in October 2018.

Edwards' second exposure to the CUSO came in September atCUProdigy's users group meeting. “The most fascinating thing aboutit was to watch the collaboration between credit unions,” MacKinnonsaid. “There was truly a feeling of, 'We're all in this together.'”Plus, he had the opportunity to talk to both one of the largestcredit unions on the core and one of the smaller ones. “I witnessedfirst-hand the collaborative nature of the people getting togetherand the one-for-all and all-for-one kind of attitude.”

For MacKinnon, it proved the credit union made the rightdecision. In addition, because CUProdigy's core is browser- andcloud-based, the CUSO can customize solutions right off the bat fornew clients based on what they need. MacKinnon pointed out, “Thatkind of circles back to the collaborative nature of theirapproach.”