An asset/liability management (ALM) system "written by credit union people, especially for credit union people" is the latest addition to EDS' Credit Union Industry Group, according to Dave Campbell, client executive.
EDS gained 345 new credit union clients when it purchased the assets of Northern California-based Minerva Computer Systems, Inc. and its primary product, Wisdom 2000 ALM in January. Minerva is a 19-year-old provider of accounting and analysis products for 485 CUs nationwide, 140 of which were already EDS clients.
Though EDS serves more than 2,400 CU clients, with core, item and card services, it didn't offer an ALM solution. Wisdom takes the giant provider one step closer in its goal to "touch all parts of the credit union industry," Campbell explained.
Campbell said that now when credit unions of any size come knocking for ALM solutions, EDS is "prepared to offer one of the best in the industry." Current Wisdom CUs range in size from $1 million to $750 million in assets.
CUs at EDS that aren't using the system will be "encouraged to switch over," Campbell continued. "Wisdom is good enough to provide all the features and functionality a CU will want from an ALM product."
Derrell Pulis, former Minerva vice president, has joined EDS as senior business service analyst. He feels that EDS has the power to bolster Minerva's capabilities, providing support and redundancy.
For example, Web-based Wisdom training modules are on the horizon.
"Minerva, being small like it was, didn't have adequate staffing or resources to do that for credit unions," Pulis explained.
Furthermore, with interest rates wobbling, good ALM software is a manager's best friend, Pulis suggested. And the typical Wisdom user, like the system's designer, is a CU manager, said Pulis. Besides simulating membership changes and new loan types, Wisdom produces risk management models based on interest rate projections.
The Windows-based system is comprised of three modules: current/history, regulatory compliance; ALM; and investment portfolio management. In addition to casting what-if scenarios, credit unions can generate monthly board packets, compare budgeted and actual results and calculate numerous analysis ratios. Wisdom consolidates reports into one back office software suite.
CU managers are increasingly held accountable to the NCUA as well.
"We've always kept close watch on the NCUA website. The software is updated within 30 days of any regulatory change," Pulis added.
EDS-Minerva clients also have access to www.conclusionsonline. com, and EDS-maintained regulatory compliance site. Updated several times per month, the site contains articles, Q & As, a Regulatory Reference Guide with job aids, reporting guidelines, and an "Ask A CRCM" column, where CUs can e-mail questions directly to Certified Regulatory Compliance Managers
