Marching methodically through three distinct phases, credit unions can greatly improve the chances of standing up the dream home equivalent of an analytics strategy.

Phase 1: Designing The Blueprint

An effective analytics blueprint lays out milestones in each of the six core elements.As strategists think through the nuances of each element, it’s helpful to remember there’s no finality to an analytics blueprint. In fact, the best strategies are made up of plans nimble enough to evolve with emerging market realities and changing goals of the business.

1. People: Determining roles, responsibilities, and an operating model for data and analytics.
2. Process: Building out the procedures that enable data and analytics execution.
3. Technology: Identifying the platforms and tools that allow data and analytics to function.
4. Governance: Establishing processes that support data analytics.
5. Analytics: Practicing the disciplines of reporting, exploratory research, and predictive analytics.
6. Architecture: Creating processes capable of scaling data and supporting future design and build.

The purpose of the analytics blueprint is to create a structure that ultimately accomplishes three things: 1) analyzes the current state of data and analytics; 2) formulates a vision of target end-state; and 3) establishes a north star for full analytics maturity.

Phase 2: Building The Foundation & Framing Business Problems

Once the blueprint has been completed and socialized, the credit union is ready to begin pouring the foundation of the analytics dream home. Doing so starts with six questions leadership should aim to answer in a cross-functional way, tackling the solutions with as diverse a group as possible:

1. Which of our business problems can data analytics help solve?
2. What product or service capabilities are we trying to elevate with the help of data?
3. What insights are we trying to understand?
4. How can we use data to learn about our membership?
5. What kind of data would help, and where can we source it from?
6. How will we implement our processes across teams?

To be sure, the above questions are merely a starting point. However, they address some of the initial elements that will eventually become the foundation to strengthen and sustain a credit union-wide culture of analytics.

Phase 3: Optimizing Spaces & Planning or Expansion

The third phase of building a credit union’s analytics strategy is focused on achieving speed to value. Not only does this help team members across the organization see and feel the impact of data analytics, it generates unrivaled momentum. When credit unions start small, earn quick wins, and socialize those wins with intention, they generate excitement and enthusiasm for data and its ability to further the credit unions highest purpose.

Phase two revealed the business problems and opportunities data was most capable of solving. Phase three makes space for credit union teams to experiment with use cases designed to ferret out that potential. If, for instance, a credit union determined in phase two that indirect memberships represented a sizable growth opportunity, phase three may involve the creation of a predictive model that identifies those indirect members most likely to covert to active members. The model need not be perfect;in fact, it’s likely it will not be. Testing, experimenting, even failing, leads to learning, and the appreciation for continuous learning is at the heart of every effective analytics culture.

Breaking ground on your analytics dream home is not something that can be done overnight. It may also require expertise and assistance from outside the walls of the credit union. Just as you would select a general contractor with a shared vision for a new house, you want an analytics partner that appreciates and understands the movement. That is how a credit union ensures its analytics strategy is built with, and maintains, the kind of people-centricity members expect.

Aaron Grossman is a consulting sales specialist for CUNA Mutual Group’s AdvantEdge Digital where he guides credit unions through the data transformation journey. He can be reached at aaron.grossman@cunamutual.com.

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It’s not typical for a credit union of that size, or any size, to have someone specifically in that role given this age of plug-and-play commoditization, but Hollen-Stansbury’s work speaks to the critical role the core plays as the operational hub in today’s credit union. Her work also underscores how someone dedicated to making the most of the core can make a difference in the entire operation.

Hollen-Stansbury joined the former Postal Federal Community Credit Union in February 2010 and became director of core services in July 2011, a month before the cooperative became BluCurrent Credit Union with a charter to serve 10 counties in southwest Missouri.

Here, she describes how she works with the core platform and her colleagues.

What core is BluCurrent on? Do you operate the core in-house or through a service bureau?

Diann Hollen-Stansbury: We’ve been on the Symitar Episys system since 1998. We operate through an independent CUSO, Managed Financial Networks. Our servers for our core processing are in the Springfield Underground.

Why did BluCurrent create a title and role of director of core services?

DH: Our IT team was growing quickly. In-house projects created new needs that required a new role. In my current role, I function as somewhat of a liaison between the banking-focused staff and our IT team.

I talk to the staff to understand, from a banking perspective, what their needs are and translate that into actionable items on the IT side. I’ve been in the banking industry for 24 years, so I’m able to translate banking terminology into actionable IT items.

Once I moved into the director of core services role, I was able to pull in new functionalities that benefit the credit union. BluCurrent was able to grow alongside its core system.

The credit union also didn’t have a team member who continually reviewed core system releases. Once I moved into the director of core services role, I was able to pull in new functionalities that benefit the credit union. BluCurrent was able to grow alongside its core system.

Broadly, what do you do at BluCurrent?

DH: I work with anything that touches the core. This includes how data flows into the core, how the core is functioning, and protecting the data from system to system. I focus on what data goes where and how it gets there.

I also talk to third-party vendors when the credit union is considering adding a new product or service and assess how it will impact the IT area.

I spend much of my time researching, including regulations, how to do things differently in the core, and why certain things are happening.

More specifically, what do you do and how does your role bring value to the credit union?

DH: I assess how things work and why they are functioning a certain way. I also review the documentation the credit union has access to. If it goes beyond the documentation the credit union has readily available, I work with the vendor to get additional information. Overall, I dig in to see what the program is doing.

I have attended user conferences and participated in core alpha testing for several years, which means testing what goes on before it goes to the beta testers.

I use the core processor’s robust website, resources, releases, and documents. There’s also a user-created library of programs that have different functions. It’s especially helpful to see how other credit unions have completed projects and done things. This stops you from having to totally re-create something or start from scratch.

How has improved integration and other advances helped BluCurrent offer new products and services?

DH: We previously handled project management from start to finish internally. Now the vendors assist with project management. They communicate with one other directly and work together to figure out what the credit union wants and where it should be done in the system. Does it make more sense for the core to house something or a different program?

For example, our online and mobile banking vendor recently worked directly with our card provider to set up card controls for our members. We’ve seen advances in cards, like contactless payments and mobile wallet. All of the pieces are working together at the same time to make this possible.

How have these improvements helped improve your own internal processes?

DH: It has helped fill in the gap between what the staff needs and what the programmers can accomplish and provide. It has helped translate from front-line staff needs to code.

Who do you report to? Who reports to you?

DH: I report to our senior vice president of information systems. I don’t have any direct reports at this time, but we hope to continue to grow our team.

What makes you a great fit for this job?

DH: I have a computer information systems degree, which is significant because computer science degrees have more emphasis on the technology behind things, like operating systems. My degree was more focused on the business side. I have 24 years of banking experience and previously worked for a large core processor.

What challenges and opportunities for the credit union does your role address and how do you address them?

DH: As for opportunities, we’re staying up to date with core system advantages and producing more in-house programming work, which allows us to develop and customize programs to meet our specific needs.

We had to challenge the team to shift their mentality to a more proactive way of approaching things like pending updates, regulatory changes, and data validation and cleanliness. All this will help us avoid problems that could lead to potential fines or other penalties.

What’s your daily routine at BluCurrent?

DH: I do research on how to make things work and coordinate systems with one another. I also figure out how to do what the credit union wants to do, like process changes, program changes, or a combination of the two. I continually seek solutions to provide new opportunities such as new software or functionalities that we should evaluate. I facilitate communication among different departments and staffing groups and do it in a way that’s understandable for all.

How has the COVID-19 pandemic affected what you do at BluCurrent?

DH: We went from working in the office to many working remotely. Our responsibilities have stayed the same. As a team, we decided to fast-track digital banking services.

Job titles say as much about the organization as they do the person. The “What’s In A Name” series on CreditUnions.com dives into notable, important, interesting, or just plain fun roles to find out what’s happening at the ground level and across the industry. Browse the whole series only on CreditUnions.com.

How does your role improve member service?

DH: I find out the needs and requirements of different roles in the credit union and work to find a solution or a better way to do things.

How do you track success in your job?

DH: When we smoothly implement something new while making sure we address needs without impacting any other moving parts. During an implementation, it’s always disappointing when there’s an unforeseen negative impact to a different area of the credit union.

I also see success when I get assurance that things are functioning perfectly or at least as efficient and effective as possible. Our management team is great at complimenting a job well done.

I find the fact that I get to work on a team of intelligent, skillful IT professionals a success. When one of the team members wins or is successful, it’s a win for me.

How do you stay current with topics that fall under your role?

DH: I attend user conferences for our core system and sometimes for other vendor products we use. I never miss an opportunity to ask a lot of questions to the vendor directly. I review documentation, newsletters, and other publications, some of which are specific to regulations. I also participate in industry user groups one example is the Verafin community to learn what we can do to improve.

This interview has been edited and condensed.

The post What’s In A Name: Director Of Core Services appeared first on CreditUnions.com.

For many years, the same could have probably been said for the big legacy players in credit union core data processing. You know who they all are. Just fill in the blank: No credit union CTO ever got fired for buying _____. As true as this may have been a few years ago, I’d argue that trying to play it safe today is extremely risky. Here are three reasons why.

Playing It Safe Is Expensive

In fact, it’s very expensive. Big legacy cores have big payrolls to cover, big investors to satisfy, and big infrastructures to pay for, so of course they have to charge you big money. It’s not just the exorbitant software license (for an on-premise solution) or outrageous per-member charge (for service bureau, which legacy cores are now probably calling “cloud”). I’ve talked to more than a few credit union executives who tell me they’ve grown wary of being “nickel and dimed” by their legacy core providers.

With today’s razor-thin margins, you can’t afford to be wasting money supporting some big corporation’s excesses. Now more than ever, you need to seek real value in a core processor.

Playing It Safe Slows You Down

I’ve heard credit union executives use a lot of words to describe their legacy core providers. Nimble has never been one of them. It’s not just their old technology that slows them down, though. It’s just as much a product of their bureaucracy. Changes happen slowly when they have to pass through 10 different committees in 10 different towns.

Comparing a big legacy core provider to a CUSO like Prodigy in terms of nimbleness and agility is like comparing a trans-oceanic cargo freighter to a power boat. We’re structured such that we’re always in a position to help you push forward rather than get in your way.

Playing It Safe Is Technologically Risky

It’s important to remember that some of these legacy cores are built on technology that’s 40 or 50 years old or even older. Consider that for just a moment. Think about the car you own today and how it compares technologically to a car that’s 50 years old. Sure, you could start adding modern upgrades to that 50-year-old car, but you’d always be stuck playing catch-up. And there’s a good chance you’d end up with a Franken-car.

It’s not much different with core processing. Legacy cores can add all the middleware layers and more modernized components they want, but that will never serve your credit union as well as a core platform that was built natively on modern technology and delivered through a true cloud environment.

Could technology take such a sharp turn that all core processors are caught flat-footed? I think that’s highly unlikely. But even if it did, which do you think would adapt more quickly – the monolithic core with its 50-year-old technology or the nimble CUSO with its modern, cloud-based core platform?

I think you know the answer.

Amber Harsin is CEO of Prodigy CUSO.

This sponsored content article is provided to the credit union community for shared insights and knowledge from a recognized solutions provider in the industry. Please note that the views and opinions offered here do not reflect those of Callahan & Associates, and Callahan does not endorse vendors or the solutions they offer.

If you are interested in contributing an article on CreditUnions.com, please contact our Callahan Media team at ads@creditunions.com or 1-800-446-7453.

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The total number of American credit unions decreased from 5,275 as of June 30, 2020, to 5,136 one year later. But, fueled by pandemic-related relief measures, total shares at those cooperatives increased $226.5 billion (15.0%) from $1.5 trillion to more than $1.7 trillion during that same time.

Loans, meanwhile, grew $56.8 billion (5.0%) from $1.1 trillion as of June 30, 2020, to more than $1.2 trillion as of June 30, 2021. Membership, too, is growing. Annual membership growth was 3.9% as of June 30 as the number of members increased from 123.7 million to 128.5 million.

Fiserv Slips A Little But Still Dominates Market Share

Fiserv remains the 800-pound gorilla in the core processing room, with 29.4% 1,510 of 5,136 credit unions using one of its family of 15 platforms. That’s down 1.4 percentage points from last year. Of the 139 credit unions lost in the past year, 33 or 23.7% were Fiserv clients.

Symitar remains in second place in market share, with 533 clients and a 10.4% share that’s up 64 basis points from one year ago. [Editor’s Note: CSPI recently acquired Symitar’s CruiseNet platform for smaller credit unions; Callahan adjusted market share metrics throughout the guide to account for this.]

Although the domination of these two stalwarts in the credit union core processing space is clear Fiserv and Symitar have a combined 39.8% market share their client bases do differ. Symitar serves more of the movement’s largest credit unions. Its clients include 177 credit unions with more than $1 billion; that’s 18 more than the previous year.

Meanwhile, Fiserv has 156 credit union clients with more than $1 billion in assets; that’s up 14 from last year. It tends to lead the market in clients in each of the other asset bands. For credit unions with $250 million to $1 billion in assets, for example, Fiserv boasts 226 credit union clients versus Symitar’s 219.

Along with mergers and liquidations, Fiserv lost clients when Italy’s Dedagroup combined its U.S. operations under the new VisiFI brand in 2020. The new CUSO added 31 new clients including some former Fiserv Spectrum users in the past year in addition to the 75 it acquired in its earlier acquisition of EPL.

Meanwhile, the largest organic gainer of clients was Corelation, which added 28 new clients to its KeyStone platform without the benefit of an acquisition. That was the most for any single platform and gave Corelation a user list of 122 credit unions and a market share that grew by 59 basis points to 2.4%. Fiserv’s DNA, a prime competitor for Corelation and Episys, was the core processor for 158 credit unions.

Altogether, 14 of the 29 cores serving client bases totaling at least $400 million in assets gained clients year-over-year. Thirteen lost clients and two maintained the same number.

As for credit unions on a single platform, Symitar’s Episys leads the industry with 698 credit union clients spread across three providers: Symitar itself (533), Member Driven Technologies (97), and Synergent (68). Currently, 13.6% of the nation’s credit unions run on Episys, which gained 26 new users this year, 19 of them through Symitar directly.

Second by that measure is FedComp’s Platinum platform, now in use by 505 mostly very small credit unions, down 25 clients from last year but still good for 9.8% market share in terms of number of clients. That was the most clients lost by a single platform, followed by Finastra’s UltraData platform, which lost 24 clients.

The Benefits Behind This Market Share Guide

After people and buildings, the core processing system is typically the most expensive item in a credit union’s budget. Choosing whether to stay with a current provider or convert to a new one is a major decision, and the conversion process itself can easily take a year to pull off and several years or more to fully take advantage of new capabilities.

The Market Share Guide: Credit Union Core Processors from Callahan & Associates is a one-of-a-kind resource available to the credit union industry. Along with editorial content packed with actionable insight, Callahan provides detailed core rankings based on number of credit union clients, by credit union membership, and by credit union assets. It also offers an overview of performance from both a provider and platform perspective. Begin your exploration of core data with market share tables and graphs, then pop over to the Platform Profiles for an aggregate overview of select providers accompanied by minimum, average, and maximum financial performance metrics for credit unions on their respective cores.

All of this and more is available at your fingertips. Check it out, and keep the guide around for reference year-round. Callahan will publish another one next year, sharing the latest insights to inform credit unions strategic thinking around this most essential of vendor relationships.

Michael Zelna is an industry analyst at Callahan & Associates. Reach him at mzelna@callahan.com or (202) 223-3920.

The post Veterans Lead In A Shrinking — Yet Growing — Credit Union Industry appeared first on CreditUnions.com.

At the same time, member numbers are rising. Last year, federally insured credit unions added 4.2 million members to their ranks, according to the NCUA, as consumers sought lower fees and higher rates.

The falling number of credit unions in operation, combined with an increase in the number of consumers seeking credit union membership, spells an opportunity for these financial institutions. However, attracting and retaining members will increasingly rely on innovation, as digital capabilities capture the minds and wallets of the American public.

An Unprecedented Year Drives The Need For Rapid Digital Transformation

A global pandemic served to accelerate the consumer migration to digital in 2020. As social distancing mandates and stay-at-home orders changed the face of society, 34% of consumers increased their usage of banking apps, according to The Financial Brand. More importantly, two-thirds plan to continue using these apps as the employment of digital banking channels overall continues to grow.

In addition to increasing use of existing apps, consumers stepped up the number of technology aids they were using to manage finances during the pandemic. Around half of respondents to a recent survey indicated that they now employ three or more fintech apps to handle money matters, The Financial Brand says

Trends like these speak to an underlying need for efficiency as consumers seek faster and more streamlined methods for managing finances. Survey findings reveal that 57% of respondents relied on digital capabilities to save time, while 42% sought cost savings, The Financial Brand report adds.

Businesses also increased their usage of digital channels. Hit by a wave of economic fallout as the pandemic wore on, access to financing became the lifeblood of many organizations. The government rollout of the Paycheck Protection Program (PPP) and a special round of Emergency Injury Disaster Loans (EIDL) were credited for saving small businesses that were able to obtain them.

The problem was, not all businesses were able to access these critical financial supports in time to save business operations. Lacking digital capabilities to speed the end-to-end lending lifecycle, many credit unions were unable to meet member needs before the initial wave of funding ran out.

In January of 2021, the U.S. Census Bureau reported that nearly half of businesses continued to feel moderate impacts from the COVID-19 pandemic. Just over 30% felt a large impact, the Census Bureau survey found

As economic hardships persist, both businesses and consumers will be looking to credit unions for faster turnaround on loans to support basic financial needs. The growing trend toward online banking adds another layer of complexity to credit union operations, both inspiring the fast evolution of digital capabilities.

That leaves many credit unions between a rock and a hard place. Legacy core system providers aren’t recognized for best-in-class capabilities, leaving credit unions behind the curve of consumer adoption and expectations.

Changing the core, however, isn’t always a suitable option, since core transformations can open the credit union to a number of risks as well as the need to overhaul other systems, such as card payments and processes.

Taking the Digital Initiative

Consumers today are looking for more than share checking and share savings accounts from their credit union. They expect the credit union to act as a financial concierge, providing for a complete realm of services, such as:

• Simple dashboards to explain spending habits
• Personalized saving strategies and support to adhere to savings plans
• Real-time SMS fraud alerts
• Hassle-free micro investments
• Simple peer-to-peer payments

While consumers can currently accomplish many of these activities utilizing third-party resources, the experience isn’t seamless and requires members to shift from app to app to complete tasks. As credit unions explore innovation, they need to consider factors like these, focusing on creating not only a product-rich environment, but a seamless flow between the wide variety of products and services being offered.

As credit unions seek new ways to fulfill the changing needs of members and to remain competitive, many are implementing innovation teams. Tasked with leading the credit union into the future, these subject matter experts are focused on improving the customer experience and exploring a number of avenues toward digital adoption.

Member interaction is crucial for innovation teams to identify consumer habits, trends, and preferences, but collaboration with IT, security, and vendor teams is equally as critical. While improving member experience is the overarching goal, thought must also be given to cost and the timeframe of transformation initiatives, as well as how any proposed transitions will impact existing credit union operations. Overall, the goal is to pave a five-year path toward a more member-centric operation.

Credit Unions Must Begin Now

In the current climate, ample opportunities await credit unions, but competition is growing and fierce. Sixty-five percent of consumers would be willing to move their financial accounts to Amazon, while 58% would trust Google with their financial management, Finastra research shows Acceptance of challenger banks is also increasing.

Putting these trends together paints a picture of both opportunity and challenge as credit unions must accelerate digital change to keep pace with expanding competition and rising consumer interest.

The post Credit Unions Must Double Down On Digital To Meet Member Needs appeared first on CreditUnions.com.

In this environment, credit unions and banks will need to transform the core banking system from a mere system of record to the source that drives member engagement. Fortunately, modern technology is leading the way, simplifying digital transformations and making it easier for financial institutions to earn loyalty.

In earlier days, consumers were delighted with simple services, such as checking account balances. Then, they began to expect the more complex transactions, such as paying bills or applying for a loan. Now, consumers are demanding experiences from their banking applications. For example, the simple act of paying a bill morphed with the Instagram mentality to create PicturePay. Or, consider how a digital payment combined with social media can create a company, and a verb, like Venmo.

Using Digital To Personalize Experiences

Digital tools are merely a starting point for financial institutions, rather than an end point, as consumers and businesses alike expect a more personal touch. They need to know their financial institution understands their needs throughout their financial lifecycle. For example, merging money management within digital banking is a way to support financial health, or providing a chatbot to assist when and where they need it offers the immediacy people are looking for.

Offering next-gen solutions is a way to deepen engagement and loyalty. What if you could make personalized loan offers through an automated recommendation engine? Providing relevant offers makes for better experiences, empowers account holders, and helps grow your business.

Meeting Shifting Expectations

Consumers now expect credit unions to show respect for their time through superior omni-channel service. Traditional core systems can impede a financial institution’s ability to deliver this connected customer experience. Originally built as an all-encompassing engine, these rugged workhorses performed efficiently for decades when customer channels were limited, and banking functions remained relatively unchanged.

In the digital realm where data must flow seamlessly between in-person and online channels and also across multiple products, many core systems have become outdated, incompatible with the speed and agility required in the modern banking environment.

Harnessing Data For Good

The next-gen digital banking platform easily connects to the existing core, utilizing open and continuously evolving APIs to stream data between all associated products, whether owned by the financial institution or gained by partnering on fintech innovation. This enables faster, more efficient interactions and a connected, easy-to-use banking experience that builds customer satisfaction and loyalty.

As consumers engage with online tools and services, financial institutions can gain valuable information about habits and preferences. Analytics draw actionable insights from patterns in data that can be used to identify product and efficiency gaps. Financial institutions need to then have the flexibility to rapidly act on the insights and augment products and services to meet the identified needs or niche market segments. Core-agnostic, next-gen digital supports this type of agility. Using data to support the needs of your different segments is crucial to being able to differentiate through personalized banking.

To thrive in an open banking environment, credit unions need to learn how to use digital to initiate and grow personal connections. Using this approach, the loyal banking account holder of today could easily become a loyal user of multiple products in the future.

Allan Brown has served as Vice President and General Manager of Digital Banking since January 2019. In this role, Allan is accountable for driving Finastra’s Digital Banking business in North America which includes Malauzai and Cavion.

The post Building Stronger Relationships With Next Gen Digital Banking appeared first on CreditUnions.com.

• Hundreds of virtual conversions are yielding best practices learned on the fly by credit unions across the country.

• Staff members who suddenly found themselves working from home had to make adjustments that required added levels of teamwork and support.

CU QUICK FACTS

Ko’olau FCU
Data as of 09.30.20

HQ: Kailua, HI
ASSETS: $89.8M
MEMBERS:6,601
BRANCHES:2
12-MO SHARE GROWTH:13.2%
12-MO LOAN GROWTH: -10.1%
ROA: 0.14%

Ko’olau Federal Credit Union ($89.8M, Kailua, HI) was days from its first live testing for its new core processing platform when the pandemic forced a sudden change in plans.

Instead of having Fiserv staff on hand for the crucial mock conversion and subsequent discovery process, credit union and supplier went online, communicating by phone and training by Webex as the cooperative completed its conversion to the Portico platform remotely.

Ko’olau FCU went live on Aug. 2. Up to a couple weeks before that, the credit union hoped it could host Fiserv’s people for the culmination of a process that began in 2018, when Ko’olau decided to convert from its Fiserv DataSafe platform.

We decided two weeks before we went live that we couldn’t have anyone physically here with us. We came up with a plan that made our staff comfortable.

‘We decided two weeks before we went live that we wouldn’t have anyone physically here with us, says Candi Yamamoto, the Aloha State cooperative’s senior vice president. ‘We came up with a plan that made our staff comfortablethey could still help our members while knowing someone was there virtually to hold their hands.

Pandemic Forces Trial By Fire

Credit unions have been running their core technology remotely for years, through service bureaus that are attracting a growing number of clients giving up in-house platforms in favor of the cloud. But conversions are a long, slow, detailed process thatstill rely heavily on in-person contact.

Until now.

Hundreds of core conversions have occurred among banks and credit unions alike since the spring, and the experience has made virtual conversion converts out of experienced hands on both sides of the transaction.

Doug Donofrio, SVP and General Manager, Credit Solutions at Fiserv

Yamamoto, for example, says this was her third core platform change in 22 years. And despite being remote, it went better than the previous ones. Digital communication channels saved the credit union money on travel and accommodation for the vendor’steam and adequately replaced the vendor being there in person when it came to training and support.

Doug Donofrio, Fiserv’s senior vice president and general manager for credit union solutions, says his company alone has completed nearly 100 virtual conversions, approximately half for credit unions.

‘Communication is key, Donofrio says. ‘It’s essential for building trust and an effective conversion team. Be overly available and engaged on virtual channels.

Donofrio also says remote work requires more prescriptive planning.

‘Map things out in advance and stick to the plan. We’re not sharing hallways, but we can share schedules and know what to expect.

Map things out in advance and stick to the plan, says Donofrio, who spent several years leading Portico installer teams before assuming his current post. ‘We’re not sharing hallways, but we can share schedules and know what toexpect.

Heavy Support

Shanon McLachlan, President, Symitar

Fiserv’s biggest competitor reports much the same experience. Symitar president Shanon McLachlan says his operation has executed on 105 ‘events’ since mid-March, including eight fully remote conversions and a variety of other changessuch as migrations from on-site to hosted as well as mergers.

Like Fiserv, Symitar created an always-on bridge line that clients can use for questions, and it relies on Zoom sessions and other video channels for training. It also recorded sessions for anytime viewing.

McLachlan says his company has put a lot of time and effort into making the process as connective as before, and although saving time on travel is nice, it’s still important to make sure clients know they are heavily supported.

‘We want it to be like we were in the conference room, physically there when they need us,the Symitar president says. ‘The pandemic has changed how we build relationships but not the importance of building them.

4 Tips For Virtual Conversion

Ernie Hanington, a vice president at Allegacy FCU, and Doug Donofrio, a senior vice president at Fiserv, offer best practices for virtual conversions.

• Prepare And Partner: Prepare everyone to expect bumps in the road, and stress the importance of partnership across the C-suite and suppliers.
• Communicate: Be overly available to one other, especially through virtual channels. Formally establish communication channelswhether bridge lines, webinars, or Zoom that can be accessed anytime and staffed duringcritical moments.
• Plan: Plans things out and stick to the plan. Work from a detailed playbook that records all activities and timing. People know what to expect that way.
• Then, Plan B: Have backup. The coronavirus is making it even more important to have fill-ins should someone be unavailable during key moments in the conversion process.

Solving Problems Together Without Being Together

CU QUICK FACTS

Allegacy FCU
Data as of 09.30.20

HQ: Winston-Salem, NC
ASSETS: $1.8B
MEMBERS: 162,301
BRANCHES:27
12-MO SHARE GROWTH:7.1%
12-MO LOAN GROWTH:15.4%
ROA:0.56%

Ernie Hanington, the vice president of emerging technologies at Allegacy Federal Credit Union ($1.8B, Winston-Salem, NC), helped lead his shop from its conversionto the Fiserv DNA platform after 10 years on FIS Miser.

Like Ko’olau, Allegacy was only two weeks from its mock core conversion weekend when the pandemic forced the North Carolina credit union to close its offices. With the exception of one in-person consultant, both the trial go-live in the spring andthe actual go-live on May 26 occurred virtually, Hanington says.

‘It’s very different,the VP says. ‘People accustomed to working on-site and having direct interaction had to be able to stay in contact, brainstorm, and problem-solve without being able to physically be in the same room and interact,

The newness of the remote-work environment added to the complexity.

Ernie Hanington, Vice President of Emerging Technologies, Allegacy Federal Credit Union

I think the biggest challenge was that this team, like so many people, were still adjusting to working remotely at home, Hanington says.

Real-time communications channels including multiple bridge lines based on disciplines and a WebEx internal/external tool for meetings proved key to the process working, but the conversion required a different mindset and way of interactingin a high-stakes environment, Hanington says.

Some Permanent Changes

According to McLachlan, Symitar has had the tools to pull off a virtual conversion. What’s new is how the core provider has used the tools to modify training and support.

We had to grow the ability to take a whole training lab to someone else,he says.

The Symitar president says the impact of experience gained and processes refined for doing virtual conversions are likely to linger once the pandemic is gone.

It’s going to be a hybrid as we go forward, McLachlan says. ‘Now that we have the option of going full-blown remote, things like recorded, self-serve training could be among the items that will be permanent features of core conversions.

Core Conversion? Callahan Has You Covered.

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• A new chief employee experience officer at American 1 is leading a strategy heavy on internal inclusivity and community recruiting.

• Surveys set the stage for action steps, which include listening to staff and ensuring job descriptions say what they mean.

American 1 Credit Union($493.2M, Jackson, MI) is building diversity among its 200-person workforce by focusing on how prospective new employees think and feel,not on how they look.

Guiding this new effort is chief employee experience officer Tonia White, a lifelong resident of Jackson who joined the cooperative last year after 20 years in management with Bath & Body Works.

Tonia White, Chief Employee Experience Officer, American 1 Credit Union

‘All I knew coming into my new position in the middle of a pandemic was that we hire people based on a set of core values,’ White says. ‘If we hire to those values, we’ll meet our primary goal.’

These core values steer American 1 into hiring employees who are engaged, focused, trustworthy, humbly confident, and achieving. The credit union’s ultimate goal is that such employees will help build a workplace where people feel included and heard.

Diversity Begins And Ends With Inclusivity

Recruiting and hiring people who reflect its core values will help American 1 meet what White says is the credit union’s primary goal of creating an environment of inclusivity in which people and ideas can freely mix to help the mid-Michigan cooperativeexcel in member service and employee experience.

CU QUICK FACTS

American 1 Credit Union
Data as of 09.30.20

HQ: Jackson, MI
ASSETS: $493.2M
MEMBERS: 58,621
BRANCHES:16
12-MO SHARE GROWTH: 28.9%
12-MO LOAN GROWTH: 5.8%
ROA: 0.53%

Reaching that goal requires cultural work from the top down and back up again rather than easier-to-achieve hiring goals. That’s why American 1 is leading with core values over quotas.

‘We don’t have quotas,’ White says. ‘We’re building a culture, not checking off a to-do list. My job is to build a culture around our current DEI initiatives and work closely with HR to ensure benefits and hiring policiesare inclusive.’

And according to White, changing culture starts with core values.

‘You find people who believe in what your organization believes in, you look for people with those traits, you talk to people with common interests,’ White says. ‘Keep doing all of that, and after a while, you have an environment where people are comfortable expressing themselves and their ideas in ways that benefit everyone.’

Diversity of thought and expression is just as important as diversity of color and gender. ‘Inclusion’ is the word we use to refer to our ultimate goal.

Gender or skin color, then, isn’t the end goal. Rather, American 1 is looking for a meaningful mix of employees whose talents and perspectives blend to complement one another and strengthen the organization.

‘Diversity of thought and expression is just as important as diversity of color and gender,’ White says.Inclusion’ is the word we use to refer to our ultimate goal.’

Take A Survey. Then Take Action.

To kick off this journey, the executive team at American 1 crafted a DEI strategy to guide opportunities and build a more inclusive, empowered workforce. The three goals of the DEI strategy are: workforce diversity, workplace inclusion, and sustainabilityand accountability.

One of the first steps the credit union took was to survey its 200-person workforce.

‘We asked about equity and inclusion,’ White says. ‘We asked,When I speak, do I feel heard? Is my opinion valued? Do I feel I belong?’ It was all anonymous. You need to know where your employees’ minds are, you can’tjust assume you know.’

The credit union next focused on recruiting and training. Under the direction of ‘the world’s greatest marketing team,’ White says, American 1 produced a video for internal viewing that includes a quiz about appropriate and inappropriate phrases as well as answers and explanations.

Of course, inclusivity encompasses recruiting, too, and White advises credit unions to take a critical look at who comes through the hiring process.

‘If all your candidates look like your recruiters, you might want to look at some re-training,’ she says.

5 Tips To Develop DEI

Tonia White, chief employee experience officer at American 1 Credit Union, shares five ways to advance DEI at any credit union.

• Use the NCUA’s self-assessment tool to identify opportunities within the credit union.
• Create a DEI survey with the credit unions distinct goals in mind.
• Tell employees about the credit union’s DEI intentions. Then, begin building relationships, for example, through an employee resource group.
• Encourage employee involvement. Diverse ideas are critical to buy-in and sustainability.
• Remember, any progress is a win.

The Right People Are Out There, Even In A Pandemic

Although the pandemic has made it more difficult to mix and mingle, White says recruitment opportunities are still out there. American 1 knows what candidates it desires and meets them where they are. It posts job openings with the local Martin LutherKing Jr. Community Center, and, well, it poaches.

White draws on her many years of retail management experience to identify good candidates in any environment, and she stays on the lookout when she interacts with people in their work environment, such as Starbucks.

‘They have great employees,’ she says.

In fact, one of White’s first recruits was from a street fair showcasing Black-owned businesses in Jackson County and surrounding areas.

‘We recruited one of the co-founders of the event,’ White says. ‘She was at a bank. Now she’s a branch manager.’

Job descriptions also are part of White’s efforts. The credit union doesn’t use gender-specific pronouns in its job descriptions. But even beyond that, certain terms one example White gives is ‘good with numbers’can mean different things to different demographics. So American 1 asks a variety of people to read its job descriptions to spot potential biases and ensure inclusivity of interpretation.

‘As your intentions become known, the right people will find you. Intentional inclusion will attract diverse employees.’

They Will Come

Any progress is a win, White says, and success begets success.

‘As your intentions become known, the right people will find you,’ White says. ‘Intentional inclusion will attract diverse employees. The hiring process will become easier.’

According to White, an inclusive mindset leads to conversations with prospects who appreciate that mindset. And employees who appreciate that mindset attract others who also would like to work in that environment.

‘People who share your values will associate you with that kind of workplace,’ White says. ‘And as you build relationships in the community, the community will start recruiting for you. I’m looking forward to getting out and involved again when it’s safe.’

Ultimately, White’s role as chief employee experience officer is to elevate the HR experience inside the credit union and advocate for that experience outside it via job fairs and other venues.

‘DEI is just a part of it,’ White says. ‘We’re all about creating a culture that allows our teams to mesh.’

The post Diversity Begins With Inclusion At American 1 appeared first on CreditUnions.com.

The seasoned technologist had been with the cooperative for three years as vice president of technology. The Tarheel State cooperative created the new role to define Hanington’s leadership as the credit union began the process of picking and deploying a new core processing system.

When it came time to test and go live, the coronavirus forced a virtual conversion. Now, Hanington is focused on building out the cooperative’s ability to leverage the functionalities of its new core platform, the multitude of ancillary systems it supports, and the people the technology empowers and serves.

Here, Hanington shares more about leading emerging technologies at Allegacy.

Why did Allegacy create your role? What challenges and opportunities does it address?

Ernie Hanington: Allegacy created the role when I was assigned to lead our core enhancement initiative. We wanted to separate Allegacy’s emerging technologies from day-to-day technology operations.

Who do you report to? Who reports to you?

EH: I report to Annette Knight, our chief experience officer. I don’t have any direct reports. I led a cross-functional team of approximately 75 people during the core enhancement initiative.

What makes you a great fit for this job?

EH: I have more than 20 years of progressive technology leadership experience developing IT strategy and leading operations in view of business goals, compliance, and security.

I have run large initiatives and led diverse teams across many industries throughout my career with IBM Global Services, and I helped build the technology consulting business for Arthur Andersen. That experience combined with time leading global IT audit while with Sara Lee Corporation enabled me to develop strategy and define technology solutions that align with business objectives.

I also hold a bachelor’s degree in information science and data processing from the University of Louisville.

Job titles say as much about the organization as they do the person. The “What’s In A Name” series on CreditUnions.com dives into notable, important, interesting, or just plain fun roles to find out what’s happening at the ground level and across the industry. Browse the whole series only on CreditUnions.com.

What’s your daily routine?

EH: I start by reviewing my calendar to plan the day and answer emails. From there, I’ll meet with various lines of business within Allegacy to discuss needs and design, plan, and implement solutions.

Collaboration is important to our industry, and I’m fortunate to participate in calls with teams from other credit unions and vendors to learn and share ideas and solutions. I also take time during the day to catch up on general and financial news and to conduct research on emerging technologies that could benefit Allegacy.

What are your areas of responsibility?

EH: Part of my responsibility is to create, implement, and direct innovative, cost-effective technological methods to advance our strategy for information management.

Through it all, I actively participate in ideation, design thinking, and experimentation of new capabilities that leverage emerging data and digitalization technologies. I also lead the development and enterprise rollout of new capabilities in reporting and analytics programs.

A key component of my role is also to work cross-functionally with Allegacy business units, legal and compliance, information security, vendor management, and external partners.

How has the COVID-19 pandemic changed strategies and tactics at Allegacy, and what has been your role in that response?

EH: COVID-19 required us to change strategies and tactics for both our mock core conversion and go-live weekends.

The pandemic hit right before mock weekend. I organized meetings with our strategic partners [Next Step, Fiserv, Reason Consulting and NCR] to identify steps to protect our employees health but still have a successful event and keep this critical corporate initiative on track.

We developed a plan to have all third-party consultants work remotely. This added risk, but we were well prepared and structured as a team, so we could take on this risk. We established a bridge line that remained open 24/7 and allowed everyone to get status updates, have questions answered, and request assistance.

Everyone from all sides came together during the weekend, kept their spirits high during a trying time, and achieved a successful mock conversion. That success enabled our team to pull off a successful go-live weekend in May.

I also participate on our return-to-work taskforce that meets regularly to discuss the pandemic, how to implement state guidelines, and what we can do to alleviate stress on our employees.

How do you track success in your job?

EH: Success is the implementation of technology that: improves the member experience by making it easier, more convenient, and secure; delivers business results by generating revenue, simplifying processes, and building efficiencies; and eases administrative burden on our employees.

For example, our core conversion enabled our indirect sales department to double the number of loans they could process per day by providing an interface between their system and the core platform. This met all the criteria listed above.

There’s an openness to sharing information and experiences among credit unions that I have not encountered in other industries. I find this mutually beneficial and refreshing.

How do you stay current with topics that fall under your role?

EH: I read trade magazines, use research and advisory companies such as Gartner and CEB [recently acquired by Gartner] to conduct research on different topics, and attend webinars and seminars.

I also find great value in participating on calls with my credit union peers and strategic partners to discuss emerging technologies. There’s an openness to sharing information and experiences among credit unions that I have not encountered in other industries. I find this mutually beneficial and refreshing.

This interview has been edited and condensed.

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