October 2010

Choosing to undertake a core processing conversion is one of the most difficult decisions a credit union can make. Determining when such a conversion is necessary, and then accomplishing it well, are two of the most challenging activities that will ever confront a credit union management team.

First, when is a core conversion necessary? Has your credit union changed from being a local organization with a few SEGs and a focus on indirect lending in, say, 1998 to being a community credit union with a significant mortgage portfolio and a community charter in 2010? Do you have enough capital to create opportunities to merge with other organizations and become a regional or even national player? The core system needed to be successful in 1998 as a local CU is very different than the core system needed by a large credit union at the end of 2010! Core conversions are not to be taken lightl…