Credit Unions Share Strategies for Open Cores
CU executives share their perspective on open core systems and the benefits to their CUs and members.
The capability to transform to a more member-friendly business model, better and quickly incorporate third party vendors, and experience developmental efficiencies are some reasons credit unions migrate to open core systems.
For this second installment of a two-part look at open cores, credit union executives present their perspective.
Among the organizations heard from: the $150 million Tucson Old Pueblo Credit Union in Arizona, a client of Farmington Hills, Mich.-based CUSO Member Driven Technologies, which offers Monett, Mo.-based Jack Henry & Associate’s Symitar Episys platform, converted to an open banking platform in 2014; $14.8 million Colorado Springs, Colo.-based Harrison District 2 Federal Credit Union, which implemented their open core platform Dec. 1, 2018 through Layton, Utah-based CUSO CUProdigy; $5.3 billion Harrisburg, Penn.-based Pennsylvania State Employees Credit Union implemented San Diego, Calif.-based Corelation’s KeyStone open banking platform September 1, 2018; and the $2.7 billion Chatsworth, Calif. Premier America Credit Union, currently preparing to convert to Symitar EASE, Episys’ outsourced delivery in September 2019.
The reasons cited for converting to a core system was easier integration of third-party application programming interfaces. Other reasons included: better access to the credit union’s data, greater efficiencies, and other tangible benefits such as decreased IT department processing time, front office type system handling, a desire to move to a more progressive business model, and consolidation of other platforms.
Those using outsourced cores also eliminated the need to manage their hardware and updates and focus on the credit union’s core competencies.
Read more about the CU’s perspective of open cores in the March 6 issue of CU Times.