February 22, 2012

Credit Union Management magazine’s Web-only “Tech Time” column runs the fourth Wednesday of the month.

When new overdraft regulations dramatically increased call volume, Redstone Federal Credit Union used collaborative technology to develop a solution … then sold it to other institutions for a profit.

How did the CU do it?  

With DNAcreator and DNAappstore, two innovative collaboration tools pioneered by Open Solutions, a Glastonbury, Conn.-based enterprise technology provider.

DNAcreator is a powerful suite of development tools from CUES Supplier member Open Solutions. Using DNAcreator, Redstone FCU creates custom extensions to its Open Solutions DNA core system, called DNAapps. The CU can then sell the DNAapps it creates to other DNA clients online through the DNAappstore.

DNAcreator and DNAappstore came along at just the right time for Redstone FCU. The Huntsville, Ala.-based credit union was looking for a way to resolve overdraft-related inquiries more quickly. DNAcreator essentially let Redstone FCU determine its own core development priorities and circumvent the typical development roadmap that technology providers set based on the priorities of their entire client base.   

Redstone FCU created the Overdraft Research Tool and rolled it out to its call center. The DNAapp solved Redstone FCU’s problem by assembling data dispersed across the DNA core platform onto a single screen so employees could quickly access all the overdraft, transaction, and balance-related information required to resolve member inquiries.

By streamlining the process, the Overdraft Research Tool decreased inquiry resolution time by 75 percent – from 20 minutes down to 5 minutes per call – improving both operational efficiency and member satisfaction. And because the Overdraft Research Tool looks and operates like a native DNA screen, adoption rates are maximized with reduced training time.

Redstone FCU was so pleased with its DNAapp that the credit union decided to share it with others. To gain Open Solutions’ certification as a DNAcreator, Redstone FCU submitted an application, which involves an internal review at Open Solutions to ensure all developers are qualified using industry-standard tools such as WinForms, C# and Visual Studio. Once the CU’s application was approved, Open Solutions provided the credit union with the software development kit and DNAcreator training. When certification was obtained, Redstone FCU uploaded the Overdraft Research Tool to the DNAappstore where other institutions can now purchase it for themselves.

After eight months, more than 140 credit unions and banks have purchased Redstone FCU’s DNAapp, which costs $15,000 for the license fee, transforming the CU’s development team into a profit center for the credit union. As Senior Vice President Harry Gunsallus explains, “For the first time ever, the IT department can be a revenue generator instead of just a cost center. And, having sold over 140 licensed apps, we have a proven business model here.”

Redstone FCU has uploaded 12 additional DNAapps to the DNAappstore and has plans for more. A few of the CU’s DNAapps include:

• Web Links Dashboard: Provides financial institutions a centralized location to house and group commonly used Web links.
• Open Closed Report: Generates a report of numbers of deposit and loan accounts that are opened or closed for a specific time period listed by branch names.
• Enhanced Search: Gives core users the ability to perform additional search queries. It enhances traditional core screen usability by offering multiple new search criteria all on one screen. Searches can now be performed faster and easier than ever before.

Importantly, Redstone FCU views its use of DNAcreator and DNAappstore as more than just a way to escape the traditional development cycle, improve member satisfaction, and create a new revenue stream. It views this initiative as a way to actively practice the credit union philosophy of innovation and collaboration.

“As an early adopter, our initial approach was to use DNAcreator to develop solutions for Redstone,” Gunsallus says. “Since then, we’ve learned what works for Redstone can benefit financial institutions around the world.”

Brad Donham is manager of software development and support at Redstone Federal Credit Union. He is responsible for the development of custom software applications serving the financial industry. Donham joined Redstone Federal Credit Union in October 2008, bringing with him more than 23 years of information technology and software development experience.