Is Your Core Processor in "Maintenance Mode?"
If your credit union is still using an older core banking processor, you may be operating in "maintenance mode." This means that your processor is no longer making substantial updates to their software, which could limit the types of products and services you're able to offer your members.
What is "maintenance mode?"
Maintenance mode is when a core processor is no longer making significant updates to its software. Basically, the processor is not investing in any new updates or features, instead only making the bare minimum changes to keep it running. This can mean that your core will be relatively stable but require credit union staff to work in very entrenched workflows.
What a progressive core does to improve its product.
A progressive core processor, on the other hand, is constantly innovating and improving its product offerings. ESP, Inc. Vice President, Matt Lefler describes a progressive core processor as "innovative and committed to continual improvement." In addition, progressive cores typically have an open API, which allows credit unions to easily integrate with third-party applications.
"[With a progressive core processor] new features and updates are released on a regular basis, giving credit unions the ability to offer their members the latest and greatest products and services." - Matt Lefler
How often should a core update its software?
Most cores processors update their software on an annual basis, with some updating more frequently. However, a progressive core will typically update its software multiple times throughout the year. In addition to yearly updates, a progressive core should also release minor updates on a regular basis. These minor updates can be anything from bug fixes to new features and enhancements. By releasing minor updates frequently, credit unions can be confident that their core is always up-to-date and running smoothly.
How can credit unions find a core processor that is continually making updates?
There are a few ways credit unions can find a progressive core processor. But first, you must define your view of “progressive” and don’t deviat.
Ask your peers which cores they use and if they are happy with them.
Is a Core willing to partner/integrate with your chosen vendor(s)? If so, the question of price has to be asked. How much is a typical integration? Almost all credit unions will fall under this category and with a good Core partner, this is also the most cost-effective - by far.
Do you have a development team? If so, maybe an open architecture core is your preference. Having a team is imperative to take full advantage; otherwise you will lean on your Core’s Development Team (see #2).
In Conclusion
When it comes to choosing a core processor for your credit union, you can't afford to be stuck in "maintenance mode." To stay competitive, it's important to seek out a core processor that makes continual improvements to its platform. This will allow you to deploy new solutions that appeal to a wider demographic.
We would love to share our philosophy with you, let’s have a no-pressure conversation by emailing us first at sales@espsolution.net.