A recent survey of credit union CEOs asked them to choose the biggest threat to their growth prospects. Can you guess what it was?
The one thing that all of these credit union CEOs agreed on—what they clearly perceived as the biggest threat to their growth prospects—was the inability for them to innovate, due to constraints from their core platform and its provider.
That bears repeating. Credit union CEOs agree that their own core-system providers pose the biggest hurdle to their growth.
It’s a sad fact, but it’s hardly shocking. The few core-system providers—and you know who they are—operate more like private-equity firms than tech companies. They’ll buy up the latest company du jour and stamp their logo onto its offerings. But they certainly won’t integrate it. They don’t update it. As you well know, they’ll have lots of different core systems, but none of them talk to each other, forcing you to park a highly-paid human between them as the “glue” that holds the whole thing together.
To their credit, these core-system providers are good at one thing: Raising prices.
Little wonder all of the country’s credit union CEOs are so frustrated.
At The Lab, we see—and help credit unions to confront—this challenge all the time. Interestingly, it’s a mix of old (as in “never-changing”) and new. On the “old/never-changing” side, it’s activities that credit unions perform, by the thousands, daily: Things like processing ACH stop payments or outbound wires. On the “new” side, it’s issues like PPP loan processing—and then the subsequent forgiveness processing, with the SBA changing (sorry, “updating”) their requirements virtually week-to-week.
Running your credit union is hard enough. It’s doubly frustrating when the very tools you rely on to run your business actually hobble its ability to operate, let alone grow.
And the problem isn’t going away. To the contrary, it’s only getting bigger. The core-system providers have no incentive to change their business models; they’re an effective oligopoly. And there will always be new legislation and new regulations that force you to keep current: Let’s say there’s new anti-money-laundering (AML) requirements on the horizon. There may be a little company that pops up with a “solution” for it. But how to you integrate that? The core providers may actually buy that company—but they won’t integrate it, either.
Not only do your headaches (and liability exposure) increase, but you’re also forced to staff up, just to keep up. It’s a dismal prospect.
For every cluster of open-this-system/compare-this-to-that activities (commonly known as “reconciliations”) that your credit union’s knowledge workers are struggling with, you’re paying the price in terms of lost productivity and morale.
But there is a way out of this trap. The Lab helps credit unions with this all the time.
The answer: Robots.
Learn more about Credit Union RPA by reading The Lab’s “long-form” explainer by clicking this link!
Robotic process automation, or RPA, allows you to “park a bot” on top of a human “sit-at-the-computer” activity and automate it. It’s not a core system. In fact, there’s no IT intervention. Think of the bot as just another worker: one with their own log-ins and passwords, able to “sit at a computer” all day and type, click, compare, copy, and paste. Except they work at blazing speed. They never get tired. They never make mistakes. And they can be updated just as quickly as regulations change.
If you’re new to RPA, you’ll need about a half dozen bots in order to get started. Here are some examples of credit union-bot clusters which The Lab routinely installs; note that these would be customized for the exact way you get things done—and for the multiple core systems (and other ancillary systems) you use to complete them:
Every cluster of back-office operations at your credit union is simply begging for a suite of bots to “factory-ize” it. Take a look:
Want to beat the core-system-provider blues… with bots?
Contact The Lab today for a no-obligation 30-minute screen sharing demo on our patented “Knowledge Work Factory” approach.
You’ll see real banking bots in action, blazing past at up to 45x human speed, error-free. Learn how most bots pay for themselves in just one year. And get all your questions answered by our friendly team.
We’ll show you how we can install bots, start to finish, in just weeks… and how we’re able to do it all remotely from our offices in Houston.
Simply call (201) 526-1200 or email firstname.lastname@example.org to book your free demo today!