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For decades and for different reasons, many credit unions have resisted outsourcing key operational functions, ranging from fraud mitigation, regulatory compliance, dispute resolution and loan processing to member service support.
Some of the rationale for keeping those functions in-house has been well-founded, based on concerns relating to cybersecurity risk, data privacy, quality of member service, or the time and cost that might be involved in onboarding and managing a third-party resource. Conversely, many credit union leaders have avoided consideration of outsourcing altogether, either based on reports of failed outsourcing relationships from peers or wanting to maintain control over any significant operational changes. Very often, sticking with "the devil that you know" has been the safest route to follow for many credit unions.
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