Jan. 27, 2014


Comments

 
 
 
  • Kirk Kordeleski was right. You have to see eye to eye to make this work. But I applaud him and Rod Statz and the others who collaberate in this way. Credit Unions are a scale business. We depend on technology platforms that have high fixed costs and low variable costs. When credit unions share core data processing platforms they can save a lot of money. The question is can all of the participants agree on a development road map? For example if one credit unions wants to enter business services, will the other support that? What if one credit union wants SalesForce to manage member relations? SAFE CU is about to buy a new core data processing system. We have also had our own core because we do a lot of innovation and we want the freedom to choose our own path to the future. The alternative to collaberation is consolidation. That isn't always an easy road either. You develop scale but you end up in many cases having to dedicate a year to doing the merger and another year to clean up all of the loose ends or problems you find. I endorse what Kirk and Rod have done. You just have to find the right partners. Once you take that route it is very difficult if not impossible to go back to doing it on your own.
    Henry Wirz