By Wayne Benson
Nobody likes to talk about core conversions. Despite the “C” word’s lack of popularity, keeping it top-of- mind can be a key differentiator as you work to optimize your credit union’s long-term growth strategies. The conversion process, albeit a long one, should be looked at as a solution—an opportunity to improve technology and service offerings, thereby improving the overall member experience.
Think of your core as if it were your credit union’s circulatory system, moving information and data around like a heart pumps blood through the vascular network. Chances are, you don’t even think about it until there is a serious problem. But consider this—if your heart had a bad pump, would you undergo a transplant? It’s a serious operation, but it can be lifesaving. Similarly, a core conversion can breathe new life into your credit union.
It seems to me that the industry’s hesitation to embrace conversion is undoubtedly a failure of some core providers to work symbiotically with credit unions in order to generate a solution that fits their specific set of needs. A one-size-fits-all approach may work for your baseball cap, but I promise it won’t work for your core solution. A tailored approach by a company that understands your credit union’s needs is a vital component to a successful conversion.
Of course, the fear of change plays a role. Familiarity may breed contempt, but more often it produces complacency, driving decision-making in avoidance of the unknown. The challenge is to identify the opportunity hiding beneath the status quo; behind “comfortability.” The decision to convert should be made only after taking an inquisitive look at how your core is performing, then cross-referencing its performance with your goals and evolving member expectations.
Perhaps the most important question your credit union must ask, and in turn core providers must answer, is what can we do to streamline the process? There are numerous considerations at play: data protection, compliance and regulatory issues, third party integrations, staff and member experience, customer service, and of course—architectural changes. A provider must factor in these and other variables to ensure inoperability issues are addressed, not created—an unfortunate byproduct of poor customer- vendor communication.
Without a doubt, the answer is that core providers and credit unions alike must act out of anticipation rather than necessity. Changing in preparation for shifting member demand and technological evolution is a much more comfortable proposition than changing because one no longer has a choice. Innovation within the financial sector is going to happen despite our industry’s action or inaction.
If your credit union’s circulatory system is failing, you’ll undoubtedly be “outpaced” by those who are willing to say yes to the transplant; by those who recognize that sometimes the hard thing and the right thing are the same. The right core provider will work alongside you to ensure that a conversion is seamless, allowing you to deliver on your promise of a better experience for all your members.
Wayne Benson is CEO at EPL, Inc. For info: www.eplinc.com.