What credit union core processors won’t tell you
We talk a good deal about trust when it comes to credit unions. For example, in the article Credit Union’s Emphasis on Trust Holds True, we identified that trust in credit unions among their members is 60%, compared to 30% customers’ trust in big banks. Likewise, credit union executives consistently rank trust as the top priority in vendor relations. While a silver-tongued sales person can paint the Sistine chapel in your mind, it doesn’t make it a reality. Partnering with a credit union core system vendor you can trust is paramount to flashy sales tactics. Here are some questions to ask when undergoing a core system review to determine if you can trust your candidates:
- How many 3rd parties, beyond the core platform, are required to operate efficiently? If your core relies on a complex web of additional vendors to supply the necessary functionality your CU requires, the trust factor gets murky, as often times you are not even aware of which 3rd parties are being put to use or will be required.
- Are contract terms clear? Layered or staggered contracts will lock credit unions into longer terms than expected. Many credit union core processors not only employ but embrace a staggered contract strategy in a deliberate effort to entrap clients.