Trusted News for Credit Union Leaders
Credit Union Times
JULY 19, 2017 | VOL. 28 | NO. 24 | CUTIMES.COM
TECHNOLOGY
Combining the Core
The $2.4 billion, Albuquerque,
N.M.-based Sandia Laboratory
Federal Credit Union selected
the San Diego-based Corelation, Inc. to convert unwieldly
dual core processing systems
into a single, flexible and open
architecture.
SLFCU chose Corelation’s
member-centric KeyStone core
processing system to run both
its retail and commercial member accounts. The credit union
currently runs on two core platforms – one for retail (in-house)
and one for business members.
SLFCU – New Mexico’s largest
credit union by asset size – serves
more than 84,000 members with
eight branches in the Albuquerque area and two in Livermore,
Calif.
According Srinivasa Sastri Siravuri, chief information officer
for SLFCU, the dual core set-up
created some challenges, such
as staff training on two separate
cores and many members unable to easily transfer funds between commercial and personal
accounts.
In addition, Siravuri explained
any core feature and functional-ity improvements, or other third-party interfaces, would need
implementation in two separate
systems, thus increasing costs
over time. New regulations and
compliance requirements also
reduced SLFCU’s information
services team’s ability to deliver
enhancements to keep technology on a par with commer- Y16
Must Reads
Same Day
ACH Phase
II Looms
TINA OREM
torem@cutimes.com
ame Day ACH will kick
things up a notch in a
few weeks as new rules
take effect for debit
transactions. Here’s what’s coming and what credit unions can do
to get ready.
What’s Happening
On May 19, 2015, NACHA announced that it gave the green
light to a three-phase implementation plan for Same Day ACH.
Phase I, which rolled out last Sept.
23, increased the movement of
funds between financial institutions to three times per day and
required credit unions to receive
and process same-day ACH credit
transactions.
On Sept. 15, 2017, phase II kicks
in, requiring credit unions to provide Same Day ACH debit capabilities, too. International ACH
transactions and single transactions of more than $25,000 are
excluded.
The advent of phase II makes
same-day processing possible for
practically any ACH payment, according to NACHA, the Electronic
Payments Association. And that’s
a lot of payments. In 2016 the
ACH network handled more than
25.5 billion transactions — a year-over-year increase of 5.4%, NACHA reported. Those trans-
PAYMENTS
Y18
rganizers in the
community of
North Minneapolis
beset by economic,
Minnesota paradox.
And in Lincoln, Neb., anoth-
er credit union that recently se-
cured its charter will give the un-
derbanked and unbanked a new
choice to get out from under the
crushing scourge of predatory
lenders.
While Minnesota carries a
reputation of being a highly educated, healthy and progressive
state with a thriving economy, the
state’s prosperity does not include
African-Americans.
“Poverty rates remain as yet
another example of the ‘Minne-
sota paradox:’ As a
state we are better
off than the rest of
the nation, but too
often this relative
good fortune has
not extended to
Minnesota’s popu-
lations of color,”
wrote Craig Helmstetter of the
Minnesota Compass Project, a re-
search organization in St. Paul. “In
fact, Minnesota is home to some
of the worst racial dispari-
COMMUNITY
New Credit Unions Offer Hope
PETER STROZNIAK
pstrozniak@cutimes.com
Y17
FOCUSREPORT:
AUTO LENDING
Thanks to better data analysis and an increased focus on dealer relationships,
credit unions have gained a greater share of the auto loan market. Learn about 13
credit unions that tripled their auto loans since 2012 in this Focus Report. Y6
Moving
On From
Millennials
CUs should target
female business
owners. Y14
Affordable
Auto Lending
CUs can help
those overlooked
for loans. Y8
Helmstetter
