TOLEDO, Ohio-The $40-million ProMedica FCU here a has broken the shackles of a basic core system, embracing a "deluxe" data processing platform that offers all the built-in options, including mobile and Internet banking, said Rick Haas, president.
"Other core systems offer you piecemeal third-party products and try to make them work with the core system," Haas said. "It's much more advantageous if the features are developed from the inside out. The system operates better; you have fewer interface problems. Plus, if there are issues, you only have to deal with one firm and one product instead of several."
ProMedica's new core system is CMC FLEX, which boasts a seemingly endless list of advanced features, such as electronic documents and signatures, disaster recovery, online loan origination and decisioning, cross-sales and more.
But feature-rich doesn't translate to complex or high-maintenance, said Sean Holcomb, SVP at Sandy, Utah-based CMC. FLEX runs in-house at ProMedica on "simple" IBM-Java architecture on a single server - and there's no need for a full-time IT person to support it, Holcomb said.
Consequently, Haas supports FLEX himself, which takes about three hours per week, he said. A freelance network administrator pitches in another five hours per week. But you don't have to be a tekkie to run FLEX, Haas said. "Someone with very little IT knowledge could do very well with this system."
After some initial wrinkles in systems interfaces, ProMedica has made strides with FLEX just one year after deploying the system, said Haas.
"FLEX has opened up new technology for us," he said. "We're the first CU in Toledo to offer mobile banking to our members." Members have adopted mobile banking at an impressive rate-about 10% of online banking members have gone mobile in the first three months of launch, and most are in their teens and twenties, Haas estimated.
"The biggest value with CMC is that they embrace technology features so that we can attract the younger folks," he explained. "Looking at the future of the CU industry, if you're going to survive, you're going to have to replace the baby-boomers with Generations X and Y. Whereas the baby boomers want to see brick-and-mortar, the younger people never want to see your face. They want to use all the electronic features instead."
FLEX is built on open architecture, which gives ProMedica and its members a lot of latitude to customize the features, Haas continued. "We've already plugged our own fees into the system, and have given the teller system, loan forms and receipts the 'look and feel' we want." The CU can upload video feeds to its website, as well.
Meanwhile, members can personalize features by naming their accounts and customizing their online banking pages, for example. "Generations X and Y want that customization," Haas suggested. ProMedica now runs automated online loan origination, which has helped increase auto loan volume by 15% this year, he continued. "It's the first time we've increased loan volume in five years."
Members can now switch to e-statements online instead of visiting a branch to do so, which has helped increase e-statement adoption by 300%, said Haas. Fewer paper statements means the CU is saving about 50% on printing and mailing costs. Then there's the paperless office feature, which is already cutting paper use by up to 75%, he said.
MORE @ CUJOURNAL.COM
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For Some, Core System More of a Chore System-November 23, 2009
Recession Can Be a Ripe Time for Core Conversion-September 21, 2009
FOR MORE INFORMATION
ProMedica FCU www.promedicafcu.com
CMC/FLEX www.cmcflex.com
