What Do We Know about Credit Union IT Spending

 
 


The financial services industry is IT-intensive. Before the Internet/self-service era, transaction processes and "real-time" availability created a never-ending need for processing power. The networked opportunities created by the internet have added another layer of IT applications and demands.

Credit unions are probably even more IT-dependent than a bank or thrift. With an average asset size of just over $60 Million, the ability to compete rests on dedicated core processors that automate business processes and routinely interface with third party networks.

Credit unions face common questions such as:

  • What IT applications are possible versus which have a positive return?
  • How do we distinguish between what is tried and true versus what is peripheral?
  • What is the difference between purchasing an application and creating a successful business solution?

Areas of Most Frequent Spending

The top two areas for IT spending in 2004 were security and enhancing the member's Internet experience. 5 of the top 10 IT applications due for increased spending are Internet-related, with consumer online loan decisioning solutions mentioned by 68% of credit unions, according to a Callahan survey.

Areas for IT Assistance

Another area on the survey called for an open-ended response. Credit unions were asked to finish the sentence: "I wish I knew an IT vendor that could help me with __________." Many of the concerns had to do with specific applications such as CRM integration, customirzing servers, commercial lending, and check 21 capabilities.

But a second category of responses was of a completely different character. These suggest the need for overall IT planning and strategy assistance, and included remarks such as:

  • Project management across the organization;
  • Developing a good technology plan;
  • Network Strategies;
  • Solving my host system needs

Both specific solution and overall planning of IT strategy are ongoing needs of credit unions. How can your company help credit unions with these issues? Let credit unions know that you can help them by relating your case studies and your success stories via articles on CreditUnions.com.

 

 

 

July 26, 2004


Comments

 
 
 
  • For the 831 credit unions now participating in First Look, loan growth remains strong while share growth has been minimal. Find out how these credit unions are adjusting to these circumstances. dennis test
    Anonymous