Celent report: Credit unions increase core system upgrades
Ten percent of credit unions looked to upgrade their core banking system last year, according to a recent report by Celent. Historically, the average hovers between four or five percent.
I don’t have to tell you that changing a core isn’t exactly a small undertaking. Converting from an existing core banking platform, or even just upgrading, is a major project that impacts the entire enterprise. So why upgrade outdated legacy systems or consolidate platforms now? The market’s merger and acquisition activity has been really lively, resulting in a reevaluation of the core systems the credit unions have in place.
This report focuses just on the core, but what does this technology shifting mean for credit unions’ other systems.
The questions we’re getting from our customers are all along the same lines “if I change my core, can I still integrate ECM with the new system?” At this point in the ECM game, integrations seem like a basic thing to offer. But what’s causing many credit unions a lot of angst right now is just that – if they change their core, they have to rethink ECM, too.
But maybe that’s not such a bad thing. If credit unions don’t have a true ECM system, they’re probably up against a wall with a core provider’s document imaging component. If they decide to switch cores, or have to consolidate and share content from multiple acquired credit unions, it’s impossible to do so without getting an independent ECM solution.
So while all the acquisition in the credit union market is causing them to take another look at their core, long term it makes sense to also consider how to evolve their content management strategy. They’re growing and changing, and making sure they’re investing in an ECM solution that can grow and change with them is imperative. Credit unions can’t afford to have their content, especially member information, held in silos.