By Amber Harsin, CEO, Prodigy
Over the past few years, credit unions have spent a lot of time and money making sure they remain attractive to today’s mobile consumer. Credit unions have replaced their archaic core processing systems, upgraded digital banking software and deployed new product sets, all to ensure that the needs of today’s bank anywhere/anytime consumer are met.
For better or worse, our work here isn’t done. Among the many lessons already heaved upon us by 2020, credit unions and their vendors both discovered that they also need to accommodate the anywhere/anytime employee, i.e., the remote employee. With shelter-in-place orders in effect, back-office employees either have to work from home or not work at all. Most all credit unions I know have employees working from home right now. The question is: How easy or hard was it to make that happen?
For credit unions that operate their entire IT infrastructure – including their core – in the cloud, I can tell you it was almost effortless.… Read more
As someone who has worked with CUSOs for the past thirty years, I am often asked by credit union CEO’s what are the “hot” services for CUSOs? “I need more revenue streams and I need to contain my operating costs. What works?”
Revenue streams come in two flavors, fee revenue and interest revenue. Looking first at fee income, investment services can provide significant returns. After paying the financial advisors and costs, credit unions can earn between 30%- 45% of the commissions shared with the credit union which can be 80% to 92% of the total commissions. There are many credit unions that have affiliated broker/dealer relationships that generate over a million dollars per year in commission income (note that this model is direct with the credit union and not through a CUSO). The amount of capital needed to start up and support an affiliated investment services program is a pittance comparted to the capital needed to source, underwrite, fund, service and reserve for loans.… Read more
NACUSO was very excited to hear of the acquisition of OnApproach by our Platinum Partner Trellance. NACUSO CEO Jack Antonini sat down with Tom Davis and Paul Ablack last week to learn more about this amazing partnership.
JACK: Tom and Paul, Congratulations. This makes so much sense since it allows you to continue to bring significant benefits to credit unions where scale is truly beneficial (i.e., understanding data uses, trends, and combining more data for the benefit of all users), just as you did with payment cards! Brilliant move, and keeping Paul Ablack to continue product development of M360, with Trellance’s resources, should be a very big positive for the industry!
TOM: Thank you, Jack, we appreciate the partnership with NACUSO and the support you’ve given us over the years.
JACK: I know these deals don’t just happen and take a lot of work. What was behind the decision to move toward data gathering and analytics, that led to the talks with OnApproach?… Read more
Constellation Digital Partners, LLC is pleased to announce the groundbreaking release of Boötes, the third major development milestone for Constellation following the launch of Aquarius and Aquarius 1.1 earlier this year.
The Boötes release is paramount as it enables the first three core connections on the Constellation platform, and takes the developer experience to a new level by providing access to core data that allows developers to build services for authenticated users. Additional core connections will be coming soon.
“A major road block has been removed for developers with the release of Boötes,” said Developer Evangelist Daryl Thornton. “Fintech service providers can now scale their solutions across three core banking platforms by integrating with one solution. The Boötes release lays the ground work needed for developers to authenticate members and access member data on the Constellation platform.”
With Boötes, fintech service providers can develop a single instance of a service that can communicate with multiple credit union core systems.… Read more
Combines dark web intelligence with real-time authorization to prevent fraud before it occurs
PSCU – the nation’s premier payments CUSO – has announced another tool in its fraud-fighting arsenal with the addition of First Data’s FirstSenseä. By leveraging threat intelligence and analytics garnered from the dark web, FirstSense enables PSCU Owners to identify at-risk payment cards and prevent fraud before it happens.
FirstSense employs a variety of proprietary data collection methods and advanced analytical tools to identify accounts at risk throughout the fraud lifecycle. Integrated with First Data’s DefenseEdgeTM fraud decisioning solution, FirstSense enables financial institutions to use indicators of risk exposure to create rules and strategies that allow institutions the ability to prevent potential fraudulent transactions in real time.… Read more