Is customer service important when choosing a core processor? It should be!
Introduction
Choosing the right core processor is a critical decision for any credit union. A core processor is a complex system of technologies that manages all the data and transactions for member accounts. When choosing a new core processor, the software itself is essential. But the big question when you get your new solution is how is it supported? It's a big decision and should be near the top of your list. Before converting platforms, make sure they meet your standards for reliability and responsiveness.
What does "customer service" mean in the credit union industry?
More than 100 million Americans — about one in three U.S. adults — belong to a credit union. In part because consumers have discovered that credit unions offer very similar financial services as banks, but often with much better customer service.
First and foremost, credit unions are "member-owned" with an elected board of directors; their not-for-profit status means that they don't have shareholders to answer to; their focus is squarely on their members. Credit unions exist to serve their members. Plus, credit unions are typically smaller than banks, which allows for a more personalized experience.
Some examples of stellar customer service from credit unions include:
Extended customer service hours, including evenings and weekends
Foreign language-speaking customer service representatives
Free financial counseling services
Low fees
Rewards programs
Why core vendors matter.
When credit unions select a core processing vendor, they entrust their members' money to third-party organizations - a decision that should never be taken lightly. In today's modern banking architecture, your members who use home or mobile banking will directly experience your core, even if they don't know it. Thus, it's crucial to choose a vendor who has the same goals as your credit union: providing quality customer service, maintaining low fees, and acting in the best interest of the members.
There are a few key factors that credit unions should consider when selecting a core vendor, including:
Their responsiveness
Their third-party vendor integrations
Their fees
General word-of-mouth
What is good customer service from your core processor?
When it comes to customer service from your core processor, you should look for a vendor that is responsive, reliable, and committed to meeting the needs of your members. This means having easy access to experienced customer service representatives who resolve most issues immediately and pass more significant issues up the chain. If your core buries access to support under the maze of a phone tree, sooner or later, you'll find yourself throwing your stapler at the wall.
Your choice of core processor should constantly be updating and improving its software. Periodic general updates can address software patches, new features, and integrations with third-party vendors.
Use your connections.
A critical factor to consider when choosing a core is word-of-mouth. You can learn a lot about a core by what their current and former clients say about them. Utilize the network of credit union management you've cultivated to give you insight into which credit union is running which core and how responsive they are after the sale.
When credit unions research potential core processors, they should consider using their credit union league or association connections. These associations can provide valuable insights into the different core vendors available, as well as customer service ratings and member feedback. There are dozens of credit union leagues and associations across the United States, each with its own unique networks, resources, and expertise. Some of the most prominent organizations include the Credit Union National Association (CUNA), the Northwest Credit Union Association (NWCUA), and the Cornerstone Credit Union League.
One last avenue to consider is utilizing your current financial services vendors as a resource. Since your core will be integrated with bill pay, mobile app, ACH processors, and various other services, use your third-party vendors as a resource. Generally, the way your core communicates with your other vendors on the backend will be a good indicator of the service you'll also see on the front end.
Conclusion
When considering switching to a new core processor, don't forget to factor in customer service. It's an integral part of doing business and can have a massive impact on your membership. We would love to share how ESP approaches customer service. Please, reach out for a no-pressure conversation about how we can help your credit union and your members at sales@espsolution.net.