Item Processing in Flux
GLASTONBURRY, Conn.-One vendor is predicting that numerous corporates will not be able to keep pace with competitors' item processing technology, and will eventually lose credit union customers.
"With more corporate credit unions struggling, the likelihood of them investing more into updated technology is low," said Dave Reim, product manager for Open Solutions' image payments technology group. "Item processing is an expensive technology."
Reim noted that credit unions have already been turning away from the corporates for item processing due to concerns over the future of the corporate system. "When the economic problems arrived in 2008, natural-person credit unions began to wonder, 'Where do we go now?'" said Reim. "We are winning over a tremendous amount of credit unions where before we could not peel back the onion on this corporate business. We went live with integrated teller capture less than two years ago that helped lead to a bit of a tsunami of credit unions telling us that they are on our core system and want to get away from the corporates."
Open Solutions currently has 51 credit unions working with it for item processing (in-house and outsourced), and another 105 in the pipeline or in discussions.