CUProdigy's cloud solutions provide infrastructure-as-a-service, disaster-recovery-as-a-service and backup-as-a-service, all of which use the virtual desktop infrastructure.

"It liberates credit union technology staff from mundane and repetitive tasks and allows them to focus on value-added or strategic tasks," Montgomery pointed out.

Using a private cloud rather than a public cloud like those offered by Amazon or Microsoft improves the security of the credit union's data and gives it more control over who has access to the cloud infrastructure.

The CUSO provides its cloud technology to any credit union regardless of its core selection or asset size.

"We feel that all credit unions can benefit from the cloud," Montgomery said. "Our pricing is based upon a simple, per-server model and is the same for all credit unions."

CUProdigy's private cloud allows credit unions greater efficiency, enhanced regulatory compliance and an improved business continuity posture, according to Montgomery.

"Small and medium-sized credit unions can utilize cloud infrastructure to help them compete with other financial institutions," he said.

While CUProdigy offers a core solution, it does not stipulate that a credit union must use it to leverage its cloud technology. Nor does CUProdigy's system require a core conversion because the technology used to build its cloud is compatible with many types of servers.

The cloud technology does not require application program interface integration, or API. An available optional API allows technically advanced credit unions to send commands to administer and create servers and networks without the use of a graphical user interface, or GUI, which is now common on most desktop machines.

"For most credit unions, we handle those duties on their behalf and such tasks are part of our simple pricing model," he said.

Using technology helps level the playing field for smaller credit unions, Montgomery argued.

"As a CUSO, CUProdigy has made an investment that would be too costly for small- or medium-sized credit unions," he explained.

CUProdigy recently signed three cloud deals with credit unions of various sizes and said it is currently conducting trials with two others.

One of those trials is with the $141 million Tucson Old Pueblo Credit Union in Tucson, Ariz., which Montgomery said previously lost $2,000 per hour during a natural disaster before migrating to CUProdigy's cloud-based disaster-recovery-as-a-service. Formerly, the credit union could expect its systems to be down for as long as two days in the event of a disaster, losing significant revenue, but Montgomery said CUProdigy's DRaaS product reduced downtime to mere minutes.

How did CUProdigy deliver such a dramatic improvement? Through real-time replication of transactions and other data, thanks to CUProdigy's DRaaS solution and data centers. Previously, Tucson Old Pueblo stored servers at a disaster recovery site requiring a significant amount of configuration to get up and running when its servers went down.

"The days of carting tapes to a hot site are long gone," Montgomery said. "If a disaster strikes today, Tucson Old Pueblo can get back to the business of serving members before those members even realize there was an interruption."

Montgomery believes the trend of cloud migration will only continue to grow.

"Buying physical infrastructure will eventually go the way of backup tapes," he said.

Another emerging trend relates to improving the member experience, according to Jeremiah Lotz, vice president of digital experience and payments at the St. Petersburg, Fla.-based CUSO PSCU.

"Many of the emerging things we see right now involve satisfying member demands. That is why it seems very mobile-focused; because it is very experience-focused," Lotz said. "The emerging part is how to better use new technology, either from the mobile device, operating system providers or third-party entrants," Lotz said.

Three drivers of member expectations and demands are:

• Biometric logins have become a member expectation rather than something merely "nice to have."

• The rewards program experience is improved. "In a landscape of consistent functionality, credit unions that make their rewards program easiest to access, track and redeem will win," Lotz suggested.

• Members expect card controls and alert solutions to be integrated into the mobile banking experience.

There are other evolving features on the CUSO's radar such as instituting a direct consumer lending platform, nontraditional lending types of platforms and payment platforms.

"PSCU is involved in helping credit unions understand each of those emerging things," Lotz said.

Credit unions should try to take advantage of emerging technology any time there is an opportunity to improve the member experience, Lotz said.

"New technology allows us to leverage geolocation and activity, verify the person and validate the card transaction using just the technology of the device and the operating systems," Lotz said.

Mobile is a difficult channel to treat as its own source of revenue, Lotz noted. Rather, it should be a means of increasing member usage and accessibility of existing lines of revenue.

"We are focused more on what the types of interactions [are] that your members make, or have with you, that increase [credit unions'] overall per-member revenue," Lotz noted.

Credit unions benefit indirectly by tracking the number of transactions a member makes, whether they are rewards members, and whether they can easily open accounts, apply for a card or a mortgage, or have quick account access.

Lotz suggested credit unions keep these pointers in mind when developing a mobile app platform:

• Budget and time considerations sometimes cause credit unions to give up entirely on integrating application program interfaces into existing platforms. Credit unions often take shortcuts by linking to apps that are separate from their mobile banking app, which Lotz said results in a clunky user experience.

• A healthy balance of interactive design and native development creates a more pleasant end-user experience rather than adopting a single approach to how a user experiences the credit union's website on a desktop or mobile device.

• Avoid the misconception that mobile apps should emulate 100% of website functionality and vice versa.

Lotz recommended credit unions understand what technology providers are now offering, including lending and payment capabilities.