SAN DIEGO-Symitar has seen a "nice acceleration" in the number of credit unions looking to change core processors over the past few months, and the company expects that trend to continue for the second half of 2012.
Ted Bilke, president of Symitar, a division of Jack Henry & Associates, Inc., told Credit Union Journal he sees two reasons for this increase. First, with the economy showing at least some signs of life, credit unions feel "a little more comfortable" making larger technology investments. Second, CUs are realizing that it really is a "new world," and a core platform that can scale, adapt and integrate is "absolutely essential in this hyper-competitive environment."
"There are a couple of interesting sub-trends that we've seen, too," Bilke said. "First, larger credit unions seem to be leading the way in making core decisions. Symitar has already signed a number of billion-dollar credit unions this year, which is an unprecedented feat.
"Second, whereas the vast majority of our deals used to be for in-house processing, we are now seeing about a 50/50 split between credit unions choosing in-house and those choosing an outsourced environment," he continued. "I will not be surprised to see that shift toward outsourcing continue."
Bilke said it is important for CUs to keep in mind that one size does not necessarily fit all when it comes to outsourcing. For example, he noted Symitar provides its Episys platform in an outsourced environment it calls EASE (Episys as a Service). In addition, the company partners with Member Driven Technologies, Synergent and a number of regional CUSOs that offer an outsourced version of Episys.
"Although Episys is the common denominator, each of these organizations offers a unique bundle of products and services to go along with the core," he said. "I would advise any credit union interested in outsourcing to make sure it has looked at all of the options and has selected the best fit possible for its particular needs."
