by: David Gibbard
I was reading an article authored by Marc Rapport, senior writer at Callahan & Associates, called “All For One or One For All?” comparing the different technology strategies of two credit unions in close proximity to each other and both relying on select employer based growth. The two Midwest credit unions are BCU (formerly Baxter Credit Union) and Four Points Federal Credit Union.
What struck me was how different these two credit unions view their technology strategy and how one of the two credit unions is completely comfortable allowing their future to be dictated by a company that may or may not have their best interests at heart.
According to the article, the reason Four Points Federal Credit Union is willing to allow this level of control to a third party core data processing vendor is “trust” and “we could have gotten different components from different companies and then have them dicker with one another all the time, but I don’t have time for that”. The credit union CEO goes on to say, “Regarding its new provider, the agreement stipulates that the credit union will not face any rate increases throughout the life of its contract. In addition, the credit union’s staff will also likely benefit from the new system’s enhanced core accounting functions. The member service pieces are intuitive and seem easy to learn and use.” He further goes on to say, “This whole idea of putting all your eggs in one basket can be an issue,” he says. “But I’ll take that over the alternative of integrating everything and managing different vendors.”
WOW is all I can say. Let go through this point by point.continue reading »