Credit union systems
The supplier’s credit union system division is well stocked with core systems, to say the least. These compete with established vendors, particularly Jack Henry with its Symitar entity, plus newer rivals, Corelation and Vsoft. One of the 2013 takers of the latter’s Coresoft offering, Black Hills Federal Credit Union, opted to move from Fiserv XP, taking the Vsoft platform hosted by Midwest Business Solutions, which serves a number of credit unions. Another early taker of Coresoft, Denton County, Texas- based Pointbank Community Bank, set about replacing Fiserv’s Vision system. Pointbank was not happy with the service it was receiving from Fiserv nor the system, said the bank’s president, Ray David.
Fiserv lists no fewer than 13 account processing systems
for credit unions. Among the more actively sold, it seems, is the IBM pSeries and DB2-based XP2, which represents an account processing system for larger credit unions. There is also the Portico system, a low end account
processing solution which has an ASP option. Typical users of this were the three US credit unions that signed in 2009, Missouri-based Conservation Employees Credit, Firefighters Credit Union in Indiana, and Memorial Employees Federal Credit Union in Florida. Fiserv claims more than 360 clients for Portico and announced an additional eleven credit union additions in October 2014. There is also in the credit union space, as if that wasn’t
sufficiently confusing, Cubics Plus and OnCU. Two Californian entities, Organized Labor Credit Union and Electric Credit Union, chose these respectively in 2009. There is also a Microsoft .Net-based low-end system, Spectrum, with users in the US and Canada (in the latter, it used to compete with the Fincentric system – Conexus Credit Union, for instance, signed in 2009 for Spectrum to replace Fincentric’s Ovation).
The acquisition of Open Solutions brought not only DNA but also a number of other core systems as Open Solutions itself had acquired a number of smaller vendors over the years. These included TotalPlus (a mainframe-based system derived from 2005 acquisition, Bisys Information Services Group) and a system, used heavily in the Canadian lower end market, with some US sites as well, which had been sold as the Relational Banking System (RBS, an early DOS version) in the late 1980s, then as Ovation (a Windows version released in 1995), followed by Wealthview, derived from 2007 acquisition, Fincentric. There was also a version of DNA for the credit union market,
CUnify, with this also joining the massed ranks of Fiserv credit union offerings. In 2011, Open Solutions had completed with CUinfy what it called the ‘credit union industry’s largest core technology consolidation’ in the US, with the merger of Addison Avenue Federal Credit Union and First Tech Credit Union. Open Solutions’ largest known credit union deal in 2011 was at Affinity Federal Credit Union ($1.9 billion). There is also a clutch of older systems, such as Advantage,
which started off on DEC’s VMS and now also supports Windows (there are around 40 credit unions with this), others called Charlotte (a service bureau solution), CUSA, Datasafe, Galaxy and Reliance. Fiserv claims its ‘Credit Union Platforms
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from Fiserv encompass a vast array of proven in-house and outsourced account processing solutions’. It is hard to argue with this, although the pros and cons of so many systems could be debated.
Such is the myriad of credit union systems alone, that in June 2014, for instance, Fiserv announced four account processing conversions, with each credit union moving to a different system, comprising Abri Credit Union to XP2, MidFlorida to DNA, Southeast Federal Credit Union to Portico, and Wauna Credit Union to the Open Solutions-derived CUnify (United Credit Union of Mexico, Missouri, also signed for CUnify around this time). Fiserv has a specific user group each year just for the credit union sector, with many parallel streams linked to the different systems. There are tales, in the credit union sector as well as the banking sector, of prospective customers receiving multiple bids with different systems from different parts of Fiserv. In the credit union space, Fiserv fought off competition
from Symitar (a subsidiary of Jack Henry) with its Episys core system to keep its existing client, Neighbors Federal Credit Union. The credit union is replacing Fiserv’s Cube, that has been in place since 1997, with DNA (this system stems from Open Solutions that Fiserv acquired a couple of years ago). California-based E-Central Credit Union carried out an enterprise-wide revamp of its technology with Fiserv, in 2015. The credit union is deploying a range of the vendor’s offerings, including the XP2 core processing system, Corillian Online for online banking, Mobiliti for mobile banking, Checkfree RXP for electronic bill payments, Mobile Source Capture for mobile cheque deposit and the Wisdom accounting platform. Georgias Own Credit Union has selected Fiserv’s DNA
core platform in 2015. The credit union, one of the largest in Georgia with $1.7 billion in assets and over 17,000 members, has been relying on Fiserv’s technology for two decades. In 2011, it signed to implement Fiserv’s new offering at the time, the Acumen core processing platform. However, two years later, Acumen was shelved by Fiserv following the acquisition of rival vendor Open Solutions and its DNA platform. DNA was deemed strategic going forward, whilst Acumen was unsettled. Fiserv customer UMassFive College Federal Credit Union
has reported increased service uptake since deploying a host of the vendors systems. The credit union implemented Corillian Online for its online banking, CheckFree RXP for its electronic bill payments, Popmoney for personal payments and AllData personal finance manager. UMassFive already uses Fiservs Mobiliti mobile banking platform, having adopted it in 2013. Its core accounting system, Portico, is also provided by the US vendor. Two months after the deployment online banking adoption at UMassFive rose from 39% to 42%, according to Fiserv, while mobile adoption rose from 43% to 48%. First Hawaiian Bank has selected a suite of digital banking and payments products from Fiserv, in 2015. The new services, will help First Hawaiian Bank keep pace with customer expectations for innovation and technology improvement. The bank has selected Fiservs Corillian Online for online banking, Mobiliti for mobile banking, Checkfree RCP for electronic bill payment and the Popmoney personal payment service. Massachusetts-based RTN Federal Credit Union planned
US Financial Services Technology Market Report |
www.ibsintelligence.com
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