CUs Move to Outsource IT, Create Better Experiences & Deliver ATM Messaging

One credit union leader explains the CU has "fully removed the burden to buy or maintain any equipment."

Catching up on some recent credit union tech implementations utilizing outsourcing on a cloud, creating a better omnichannel experience and ATM messaging.

The Monett, Mo.-based Jack Henry & Associates’ Symitar division announced more credit unions expanding outsourcing beyond the core, by having a number of Episys clients move their IT infrastructure to a fully outsourced environment via Gladiator Hosted Network Solutions.

Almost half of the credit unions on Episys run the platform in an outsourced environment for broader hosted support to keep pace with technology, compliance and security requirements, and disaster avoidance standards. To date, more than 115 credit unions and banks have shifted to Hosted Network Solutions.

The $710 million Martinez, Calif.-based 1st Northern California Credit Union, which following an NCUA exam, realized the need for a more modern data center. In just eight months, the credit union migrated Episys to Jack Henry’s outsourced environment and moved its data center to Hosted Network Solutions.

David Green, president and CEO of 1st Nor Cal, said, “We were rotating servers every five or seven years, but now have fully removed the burden to buy or maintain any equipment. Our team is able to do more active monitoring of our systems and not waste time fixing or updating them.”

The $286 million Wichita, Kan.-based Skyward Credit Union also relies on Jack Henry to host its core and broader IT infrastructure. The credit union was running on servers, owned and managed by its members’ primary employer, that needed updating. Facing an imminent hard cutoff, Skyward successfully migrated all IT responsibilities over a weekend by outsourcing Episys and Hosted Network Solutions.

Kevin Wilmoth, Skyward’s president and CEO, acknowledged the positive change. “Hosted Network Solutions moves our entire infrastructure – servers, storage, operating systems, everything – to a private cloud that we know is more resilient than anything we could have on our own. The decision to outsource both our core and our network to a single partner who can coordinate all the variables was the most logical and cost-effective choice.”

Ted Bilke, vice president of Jack Henry & Associates and president of Symitar, added, “Demands for tighter security as well as a better member experience are equally driving credit unions of all sizes to recognize the value in outsourcing their IT environments.”

In other announcements:

The $12.3 billion San Jose, Calif.-based First Tech Federal Credit Union successfully deployed an omnichannel digital platform using Avoka Transact to create an enhanced member experience for over 40 of their products.

The Denver based digital customer firm Avoka designed the customer engagement platform system to enhance service and efficiency for both existing and prospective members, minimizing the input required from applicants during the application process. The Avoka Transact captures customer input and drive opportunities while pre-filling customer forms from Salesforce and core systems data.

First Tech’s Omnichannel 2.0 now supports 47 different account openings, including deposit accounts, home loans, vehicle loans, personal loans, credit cards, and insurance inquiries with Avoka Transact-powered applications enabling members to start a product application in one channel and finish in another.

Mike Upton, chief digital officer at First Tech Federal Credit Union, said, “The new platform helped enable 2,379 applications from all channels through one platform in the first week. As a result of the new, frictionless member-centric designed systems our new application completion rate is at 65%. Industry studies place completion around 30% for deposits, and 10% for loan applications – so we are delighted with our results.”

“As far as we can tell, no community bank or credit union in North America has as many product applications available online as First Tech Credit Union,” David Gaydon, general manager, Avoka North America.

The $183 million Michigan Legacy Credit in Pontiac and Los Angeles based FCTI, Inc. announced the launch of a multiyear contract to provide dynamic on-screen marketing to credit union cardholders at ATMs placed in 7-Eleven locations throughout the United States.

The agreement provides Michigan Legacy Credit Union the ability to deliver custom branded messages including targeted campaigns through the Screen Upgrade feature of FCTI’s Marketing and Branding Application ATM program. The SU campaign setup includes the ability to target by location and other factors, as well as the capability to run multiple campaigns at once.

“This partnership will lead to better communication with our owners that don’t bank in a traditional way,” Carma Peters, CEO of Michigan Legacy, said. “Unlike traditional branding, FCTI’s program allows us the opportunity to present our customized brand as well as dynamic messaging to our cardholders on an ATM outside of our branch network.”

“FCTI’s MBA program affords a unique opportunity for banks and credit unions to generate greater awareness of brand, products, and services – utilizing technologies not available at other ATMs,” Robel Gugsa, CEO for FCTI, Inc. said.