5 Signs Credit Unions Need Help With Their Core Conversion

by Kayle Simpson, on June 14, 2016

Last week we talked about a study that shows that the fastest growing credit unions are the most digitally capable, and the least tech savvy credit unions are losing assets. Older core systems usually do not have these new digital capabilities built in, so the best way to remedy this, and get your credit union on top, is by undergoing a core system conversion. These are often a very time-consuming, overwhelming, and costly process- however, you can ease all of your core conversion headaches and save money by getting some help.

Not sure if your credit union needs help? We compiled a list of the top 5 signs that you definitely need help with your core conversion.


You Can't Convert the Full Transaction History

Transaction history is almost as important as current data. In addition to being able to keep track of the history you've had with your current members, you won't be able to pick out trends over time, if you can't convert your transaction history. One solution is to keep your old system partially alive to retain that past data- but converting history will save so much money by turning off those servers, cutting off the maintenance agreement on your old core system, and let those licenses expire!  Further, adoption of the new system will be much more successful if employees don't have the legacy system to always fall back on.


You've Been Advised To Only Convert Active Accounts

If you only have the data of current members, you're missing out on a lot of potential insight. If you don't have the information on closed, charged-off, or inactive member accounts - how will you know what went wrong? If you only convert active accounts, you're doomed to repeat what has failed and won't be able to promote the great new digital capabilities you now have (which may have been the reason they left) to entice them to return.


The Conversion Will "Magically" Solve Data Quality Problems

Data Quality is one of the most common data problems an organization can have. No matter how much technology you have, it won't be very useful with low quality data. Cleaning your legacy data prior to converting will lead to a much easier and quicker core conversion. This doesn't happen with magic, however, it requires a diligent process and a smart team of data quality experts. 


Not All Of Your Core Processes Are Considered Part Of The Core System

There are a lot of options for tech upgrades these days. If your new core system doesn't already include things like critical reporting, ancillary servicing applications, origination, and customer facing apps - you'll probably end up with a very unpleasant surprise when you convert.  How do you know you're getting exactly what you need to function, without paying for a bunch of additional services you find out later you don't need? If you have a data warehouse, which you can read more about here, you'll have many more options to solve these challenges than just adding on whatever functionality your core system offers (or even work, doesn't!).


Your Compliance Process Is The Same, Or Worse

Compliance burdens keep growing and one of the benefits of any core conversion ought to be the simplification of compliance processes. This is also the way to think about other administrative processes, such as asset-liability matching, credit risk management, financial forecasting and planning, maintaining covenants on funding sources (FHLB lines of credit), etc.  If your core conversion hasn't made a considerable improvement in these areas - or has made it even worse, something is not right. 


Do these sound like you? If your credit union is in need of assistance with their core system conversion, we happen to specialize in it! Click here to set up a consultation with our financial data experts!

Topics:Data Science

The Arkatechture Blog

A place for visualization veterans, analytics enthusiasts, and self-aware artificial intelligence to binge on all things data. 

Subscribe to our Blog