SANTA ROSA, Calif. - Technology takes center stage at Community First Credit Union here this year, as the $120-million CU adds its first integrated lending application as well as its first imaging and document systems–among several other projects.
The new systems are just part of an overhaul afforded by Community First’s allegiance with Credit Union Shared Resources (CUSR), a 5-year-old technology CUSO of six small credit unions.
“CUSR provides the economies of scale to purchase software we couldn’t purchase on our own to keep up with the larger credit unions,” explained Todd Sheffield, CEO, Community First. “We’ve got so many technology projects this year that we’re asking a Steve Jobs impersonator to speak about them at our annual meeting.”
CUSR credit unions share Symitar core processing and audio and Internet banking solutions; Windows networking and Exchange server; the Teres Solutions lending application; the Open Systems electronic document management system; VoIP telecommunications; a hot site; and various security components.
CUSR is saving Community First up to 66% in IT costs, depending on the service, said Sheffield. Community First switched its in-house Symitar system to the CUSO’s hosted version in September, when it joined CUSR. The CU will soon launch shared branching, Check 21 imaging, a revamped website and VoIP telecommunications.
Allied CU of Stockton, Calif., helped found CUSR in 2003. Since then, the $19-million CU has been spending 40% less on technology as a result of the partnership, said Frank Michael, CEO at Allied CU.
Worn down by the high costs of technology maintenance, security and compliance, smaller credit unions have reported to Credit Union Journal over the years that they are working smarter by forming and joining CUSOs.
“All credit unions need to be more efficient these days,” said Sheffield. “I thought a CUSO would be a good idea 10 years ago, but I couldn’t find the right partner until I found CUSR. I kept asking myself, why buy all of the technology when you’re only going to use one-third of it? I wanted to split the cost 10 different ways.”
At CUSR, tech costs are split six different ways between member credit unions that range from $20-million to $120-million in assets. At the same time, members have access not only to a broader range of technologies but to each other–some of whom are knowledgeable technologists, Sheffield said.
CUSR credit unions share an “incredible” business continuity infrastructure, he continued. “If you buy disaster recovery direct from Symitar, you may not be backing up every component. CUSR is buying two of everything so that we’re completely redundant.”
When Community First starts using the Teres application, the lending department will be able to clean up a spaghetti mess of loan origination systems, including CUDL and the Symitar online origination system, and channels, including four branches, the Web branch and CUDL, said Sheffield.
“All of our channels will have the same decisioning process and will automatically integrate with Symitar,” he said. “And we’ll go from a manual, paper underwriting process to manual underwriting with electronic worksheets we can easily forward.”
Asked why more credit unions don’t join CUSOs, Sheffield said he thinks that some are reluctant to give up the feeling of control. “For some, there’s a security in having that Symitar box where you can see it and touch it.”
And making a decision as a group of CUs can take a little longer than when you make one on your own, he said. “We just did a review of Check 21 imaging, and analyzing the needs of six different credit unions slowed us down. But, in the end, we were able to benefit from the joint research and found a solution that didn’t limit us in any way.”
This year, CUSR will focus on sharing Check 21 imaging, ATM driving, mobile banking and back office services, said Michael.
“We need to work together on all back-office operations so that the individual credit unions can focus their attention on the front half of the business, their members,” he said.
The $32-million Modesto’s First FCU and $47-million Community Trust CU in Modesto, $30-million Tracy FCU in Tracy and $43-million Silverado CU in Napa round out the Northern California-based CUSO.
MORE
Read more about CU technology partnerships at cujournal.com and search the following bolded terms in the archive:
1 CUSO (Wescom Resources) Acquires Another (eCU Technologies)
Team One Gets Payback On Cross-Sales Solution After 23 Others Also Buy In
CUs Find Investment In Tech CUSO Allows Them To Offer More Input
For info on this story:
* www.alliedcu.org
* www.comfirstcu.org
