Cost analysis steered $16 million asset Acadian Federal Credit Union, Lafayette, La., toward outsourcing its core processing with Symitar in early 2012.
“You always have to do upgrades,” says CEO Sandra Williams. “And when you’re growing, you’ll need a server that’s going to cost you more.”
Acadian Federal decided it would be ahead of the game by outsourcing and eliminating those types of expenses.
Outsourcing also frees up time for the credit union’s six employees. Before, with in-house core processing, “we’d get bogged down having to do so many different things,” Williams says. “Now we have more freedom. We can get out to visit our [select employee groups] and meet with potential members.”
Another plus, Williams adds, is the built-in disaster recovery and business continuity that comes with outsourced core processing. Being in a hurricane-prone area, she knows what it’s like to evacuate.
“With outsourcing,” she says, “we know our operations will remain safe and secure, no matter where we are. We’ll keep serving our members.”
The built-in disaster recovery capability also was a major reason $29 million asset LES Federal Credit Union in Baton Rouge, La., switched to outsourced core processing. It has been on a Fiserv service bureau since July 2008.
When hurricane Gustav hit a couple months later, the credit union’s operations and services “didn’t miss a beat,” says CEO Jackie Patin.
The shift from in-house to outsourced made financial sense, Patin says. The credit union’s calculations showed costs would be similar for both arrangements. But outsourcing’s built-in disaster recovery capability tilted the scales.
“At that time, a disaster recovery package for a credit union our size was about $3,000 a month,” Patin says. “So just by weighing the costs, we figured outsourcing was the right decision.”
Plus, Fiserv stays up to speed on all core processing-related compliance issues, and processing occurs automatically on an agreed-upon schedule.
When LES Federal needs a special job run, it puts in a request and usually gets results within a couple of hours. All in all, Patin says, “we think of [the outsourced solution] as our computer away from home.”
In conclusion: In the last of this five-part series, see how outsourcing core processing can provide “headache relief.”
Not only does absenteeism affect your bottom line, it increases everyone’s workload.