2 minutes
Fear of change is the best friend to the outdated data processing system.
Sponsored by United Solutions Company
My wife and I purchased a new living room set after almost 25 years. It looks great and fits nicely in our living room. However, after a week of sitting on the new sofa and loveseat, my wife wants our old set back. She doesn’t like the stiffness of the cushions or the depth of the couch. Watching her sit on the couch is like watching a person wearing clothes that are twisted and uncomfortable. Sitting up, laying down; she makes me uncomfortable watching her. There is nothing wrong with the new furniture in my opinion, it just needs to be broken in a little.
As human beings, we want to hold onto that which is familiar. We want that well-worn couch that sinks in perfectly where we sit each night. It doesn’t matter if it is a couch, a car or a core data processing system. We hate to let things go.
Fear of Change
We recently merged two credit unions. The credit union being merged was on a system with green screens and prompt-and-scroll technology. It was interesting to see such an antiquated system, and the merger went well because the older system didn’t offer many benefits and features. The real question is, why would a credit union stay with a system with such old technology?
The answer may be because human beings are naturally resistant to change. Some suggest that the amygdala in the brain interprets change as a threat and tries to protect us in our ever-changing environment. The amygdala releases hormones that trigger our fight-or-flight reflex. Fear of change is the best friend to the outdated core system.
How to Take Action
This a call to action to credit unions processing on archaic systems. If your processor isn’t updating the system and keeping it competitive, your decision has already been made.
Begin by researching core systems. Talk to thriving credit unions in your asset range to find out which system they use. Speak with a consultant or someone you trust about core platforms.
Once you have identified a few appealing core systems, contact them and ask for a demonstration. They all have sales teams to show you how their product can transform your credit union. Invite your senior team to watch the demonstrations. Ask the provider for a side-by-side comparison between your current system and their system. You may be surprised by the both the cost-savings and the increase in functionality.
Choosing to Change
Credit unions don’t want to convert, but sometimes it’s necessary. Providing your employees and members with a competent system is critical to remaining competitive and efficient. While conversions aren’t easy, know that everyone has improved their conversion processes. Processors are using better project management tools, e-learning materials and data conversion engines to create a smooth conversion process.
My old furniture was comfortable, but I knew it was time for a change. If you know it is time to switch core providers, don’t wait. Take that first step and never look back.
Jim Giacobbe has been with United Solutions Company since 2005 when he accepted a position as chief technology officer. Jim became CEO/president of USC , a CUES Supplier member, in 2010. Before USC, Jim served the credit union industry at USERS Incorporated and Fiserv Inc. for 16 years. Jim has been a driving force at USC, expanding the business and diversifying the company’s product line. Under his guidance, assets at USC have grown 258%, and the company is poised for future growth with a new product lineup and a strong commitment to service. United Solutions Company is a CUES Supplier member.
