SAN DIEGO-Strategies that include outsourcing data processing are no longer limited to small credit union planning sessions.
According to Symitar Marketing Manager John San Filippo, the growing need for security and compliance expertise is generating more outsourcing discussions among CUs of more than $250 million-even $500 million-in assets. "We have had an unprecedented number of credit unions that have long been in-house data processors going to an outsource solution. Security and compliance issues are getting to be too much for credit unions that want to focus on things like member services. They do not have the time or resources to become security and compliance experts, and find it easier to hand those duties off."
What more credit unions are planning to bring in-house to generate additional revenue, however, are commercial business services, San Filippo said. To be successful in this area, San Filippo said it takes investment in technology and people to support the new services. "You need more than the right technology. Just like a few years ago when CRM became the big thing and credit unions bought all these CRM systems and then wondered why they did not work. They also needed the staff and the expertise to manage the system. It's the same for commercial services." San Filippo noted some CUs are bringing in the commercial services expertise from organizations such as banks.
