For credit unions, core conversions are the elephant in the room. It’s something the industry wants to avoid, largely because of associated costs, but that often needs to be done. But how do you know when a core conversion is necessary?
Here are 5 signs it’s time for a core conversion at your credit union:
Updates are Too Frequent and Painful
The more outdated a credit union’s core software is, the more frequently the team will be prompted to download and install updates. In some cases employees are asked to check for these updates on a regular basis. Sometimes the updates end up being extremely important, such as solutions to major problems or bugs.
Core software updates can be cumbersome and time-intensive, and sometimes they simply don’t work — especially when the employee running the update doesn’t understand the process.
The best way to reduce the frequency of and boost the efficiency of required updates, ensure that software runs more smoothly, and bolster network security, is to make sure your credit union’s core software is a modern solution.
Employee Morale Takes a Downturn
When a credit union’s core processor woes escalate from a mild nuisance to a hindrance to employee satisfaction, it’s time for a change — especially when the sentiment is pervasive throughout the organization.
When everyone from member-facing employees to upper management are having their essential duties disrupted on a regular basis, your credit union likely needs to begin researching first steps toward a core conversion.
Support Falters While Costs Escalate
There are a variety of ways in which core providers often do a disservice to credit unions. Some providers reduce support staff to such an extent that credit unions are negatively affected. Sometimes failure to meet expectations, fulfill promises or meet deadlines becomes a pattern. Even while the level of service by a core provider wanes, often costs soar.
When the price of core services clearly no longer matches what your credit union is receiving in return, a core conversion should be considered.
New Products and Services are on the Horizon
Many credit unions make the intelligent decision to schedule their core conversion to coincide with the rollout of new products and services aimed at improving member loyalty and satisfaction.
Whether changing the entire core system or deploying impressive new technologies to keep clients and employees happy, ups and downs are expected throughout the process. Working out these kinks all at once instead of at multiple junctures is the most prudent, time-efficient and cost-effective approach.
Downtime and Mishaps Affect Member Experience
Every credit union ultimately answers to its members, whose experiences are made worse by trends such as:
- Frequent system downtime resulting in interruptions of even basic member services
- Lack of institutional trust stemming from poor reputation building and management
On the back end of an outdated core system, credit union employees feel the pain with every cost-ineffective move they make. On the front end, community members certainly notice when their member experience fails to meet modern-day expectations.
That’s when it’s time for a core conversion.