Core Banking Solutions for Small Credit Unions

by Bart Narter,  Stephen Greer, June 29, 2011
Vendor Reviews
North America

Abstract

Core banking is the nerve center of a credit union. Credit unions, with the help of platform vendors, have been able to leverage Internet technology to handle transactions.

Most of the paper-based transactions of the past have been replaced by digital alternatives. Automation has introduced a new level of efficiency and productivity. What had existed as a disparate group of branches is now a networked entity operating as a whole.

In a new report, Core Banking Solutions for Small Credit Unions, Celent compares a range of solutions that have implementations primarily with smaller credit unions, specifically those in which more than 90% of the credit union customers have assets less than US$500 million. Celent has created a map of core banking vendors and then ranks these vendors on its ABCD analysis. XCelent awards are given out to the leading solutions within four categories.

Last year, around 10% of credit unions sought to switch their core system, up from historical averages of 4–5%. Opportunity exists where smaller credit unions look to upgrade an outdated legacy system or to consolidate processing to a single vendor following a merger or acquisition.

According to Bart Narter, Celent Senior Vice President and coauthor of the report, “The core banking market for credit unions looks increasingly more complex, with product sets and channel offerings becoming a crucial landscape for competing in an ever-expanding financial services industry. Credit unions are continually looking to maximize their product offerings with more efficient and flexible core systems.”

This is one of two reports covering core banking solutions for credit unions. The second report, Core Banking Solutions for Large Credit Unions, will look at vendors with implementations in larger credit unions, specifically those in which at least 10% of their customer base has more than $500 million in assets.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America (Boston)
Erica Ferguson
eferguson@celent.com
Tel.: +1 617 262 8225

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)208 870 7875

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81.3.3500.3023

Table of Contents

Executive Summary

3

 

Classification of Vendor Solutions

6

ABCD Analysis and XCelent Awards

7

 

The XCelent Awards

8

 

XCdlent Technology and XCelent Functionality

8

 

Credit Union Features

10

FIA Mercury

14

Advantage from Fiserv

18

Charlotte from Fiserv

22

CubicsPlus from Fiserv

25

CUSA from Fiserv

28

Galaxy from Fiserv

31

Fiserv’s OnCU

34

Fiserv’s Portico Platform

37

Reliance from Fiserv

40

Jack Henry / Symitar’s Cruise

43

Trinergy LLC

46

Conclusion

49

Leveraging Celent’s Expertise

50

 

Support for Financial Institutions

50

 

Support for Vendors

50

Related Celent Research

51

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