Why CUs Should Look for Compliance Support While Choosing a Next-Gen Core Banking Platform

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There have been numerous articles published in the media on the topic of U.S. credit unions moving to next-generation core banking platforms. While the articles provide great information and justification for moving to a next-generation core banking platform – such as the ability to be more strategic through innovation, a quicker time to market with new offerings, and better reporting and analytics – a key factor that is missing from the evaluations is regulatory compliance.

Regulatory compliance is by far one of the top expenses for a financial institution. Compliance requires the investment of not only dollars but key talent, and both are many times diverted from strategic projects. Failure to comply can lead to not only significant fines and penalties, but even bigger losses as a result of reputational risk. The window to reach compliance following a regulatory change is oftentimes very small, as governing agencies do not understand how long it can take to implement a new regulatory requirement on old technology. This is one of the many reasons regulators are pushing for financial institutions to move to new technologies.