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U.S. Core Providers Supporting the Credit Union Movement

Posted by Nicole Harper

Fri, Dec 06, 2019 @ 11:07 AM

U.S. Core Providers Supporting the Credit Union Movement

A look at the core players

More than 600 credit unions have changed core processors in the past five years. The pace of change and transformation happening in the financial services space makes selecting a technology partner more important than ever.

Each year, Callahan develops a valuable resource guide to help credit unions explore their core processing options.  Callahan strives to make this publication the go-to resource for credit union leaders seeking valuable analysis and actionable insights in a rapidly changing world. The 2020 Supplier Market Share Guide: Credit Union Core Processors provides a look at U.S. core providers supporting the credit union movement. Collectively, these core providers have helped America’s credit unions achieve strong performance.

Callahan’s latest Trendwatch webinar highlights industry performance as of September 30, 2019. The data revealed exciting trends, such as accelerated growth in assets, shares, and capital; as well strong ROA and net worth to allow for future growth and investment. In spite of an uncertain economic environment, credit unions achieved strong performance trends and grew the movement to more than 121 million members .

Credit unions and core providers can rally around the cause to build financial confidence

Jack Henry recently surveyed 630 credit union members and bank customers between the ages of 25 and 55. Respondents were asked how they feel about their current financial situations and their relationships with financial institutions, and for insights into personal interactions, digital interactions, and routines with their money. The findings? A staggering 76% of respondents live paycheck to paycheck, and 27% have no savings whatsoever. Only 47% of respondents said they are somewhat or completely financially confident – which means that one out of every two people who contact your credit union lack confidence.

The financial life of your member is the struggle between paying today’s bills and saving for rainy days. While member experience may mean something different to every credit union, all credit unions (with support from their core provider) should be focusing on building their members’ financial confidence. When members are not able to participate in the credit union financial cooperative, both credit unions and their suppliers lose.

Walking the talk

As a member-owned financial cooperative, credit unions exist to be a trusted financial partner. The economic participation and education of members, as well as concern for community, is part of credit unions’ DNA and the Seven Cooperative Principles. Examples of the credit union movement standing by their members in times of need are vast and varied. Credit unions often make headlines by providing natural disaster relief, stepping up to help members impacted by the longest-ever U.S. government shutdown, and recently, supporting GM strikers. However, credit unions should ensure that they’re equally responsive to members as they face individual life circumstances that can shake financial confidence.

Here a few questions to spark conversation at your next leadership team meeting:

  • Who owns financial wellness (for members and employees)?
  • Do you have a financial wellness program goal? How do you measure progress?
  • Do you have an impact statement to help communicate financial wellness benefits to your members, employees, and community?
  • Are you actively promoting your credit union difference and the ways your credit union helps build financial confidence?
  • Can your members quickly find your financial wellness resources and request help when needed? Have you identified triggers to help you be proactive?
  • Have you asked your members to rate your credit union’s support to their financial wellness?

More than core

Top features such as seamless integration, an intuitive end-user experience, and adaptability are important in a core provider.1 However, credit union executives are looking for more than core processing technology when selecting a new provider.  Executives want to establish a partnership with their core processor. Therefore, alignment with a core provider’s corporate philosophy and culture is an important factor in the decision-making process of choosing a new core provider.

Symitar is proud to sponsor the 2020 Supplier Market Share Guide: Credit Union Core Processors. Symitar President, Shanon McLachlan, shares his perspective on choosing a partner, “I believe that among the most important qualities in a partner are a dedication to collaboration, a laser-like focus on the user, and a commitment to openness, both in APIs and corporate philosophy.” Be sure to review the guide for additional insights and perspectives from the U.S. core provider community.

Power of choice

While every credit union has its unique strategic plan and growth objectives in their market, they have the power of choice. Callahan’s 2020 Supplier Market Share Guide: Credit Union Core Processors includes more than 40 core processors that serve credit unions of all asset sizes. It’s encouraging that there’s a core provider to fit every credit union. As credit unions renew their focus on their purpose and mission, the supplier community continues to be an advocate and supporter of the credit union movement. 

Callahan subscribers can access the guide. If you’re not subscribed to Callahan, explore Callahan subscription options

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1Aligning Core Expectations With Reality

 

Topics: Credit Unions, FI Operations, Future Ready, Modern Membership

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