At CUNA's Governmental Affairs Conference (GAC) here, Symitar Systems, a provider to more than 350 credit unions nationwide, plans to announce its Symitar for Windows core system will be available in a service bureau environment by the fourth quarter of 2002.
Processing Content
"With today's high cost and scarcity of experienced IT staff, the service bureau option can be a smart decision for credit unions that want a 'hands off' system," said Bruce Cormode, Symitar's president and CEO, in an exclusive interview with The Credit Union Journal. "Lesser system complexity and greater ease of use leads to credit unions offering better service to their members."
Aimed at its 290 credit union clients that serve 15,000 or more members, the Windows platform rounds out the provider's commitment to the service bureau model. Last July, Symitar announced its Conductor core data processing system, designed for its CU clients of 15,000 members or fewer, in a hosted environment. Of the 65 Conductor clients, one is currently running in the service bureau environment.
"We're closing the loop," Cormode said. "We now offer a total hosted or in- house solution regardless of the size of the organization."
The Jack Henry & Associates, Inc. subsidiary will rely on its parent company's resources, running the system from a JHA Outlink Data Center. JHA operates a nationwide network of data centers that currently provide hosting for the company's banking systems. Initial installations will be run from the Lenexa, Kansas, data center.
The hosted system offers the same functionality as the in-house Symitar System, which runs on the IBM pSeries server, a member of IBM's eServer family of products, said Cormode. A full range of complementary products will also be available, including audio response, document imaging, and Internet home banking.
Slow Migration Expcected
Symitar doesn't expect an immediate mass conversion to service bureau. "We would be very happy to bring over half a dozen new clients within the first year of operation," continued Cormode.
Depending on the individual requirements, CUs should expect their conversion to the hosted model to take about six months, he said.
"Those of our clients who are in-house appear to be satisfied with the in- house solution," added Kathy Hooker, national sales manager. "But we're opening up our marketplace to take advantage of opportunities we've missed in the past to serve CUs who want a hosted solution."
The appeal of service bureau? Hooker looks at it as a "shift in the risk." "When you are in the service bureau environment, we manage the risk." That risk includes less pressure to recruit and retain technology workers.
At the same time, credit unions often find the hosted environment is a bit like dining out-less work-but substitutions are forbidden and there's a longer wait. That 'gee-whiz' technology isn't available until next year; you can only offer 12 months of electronic statement history to the member when you want to offer 18.
Not so with Symitar, according to Hooker.
"Traditionally service bureau is cookie cutter," Hooker agreed. "However, Symitar sets itself apart by enabling CUs to customize the system themselves with incredible flexibility."
