Bill Willingham, President and CEO of WyHy Federal Credit Union (WyHy), developed and reallocated technical resources so the credit union could focus on member facing technology. The IT staff had bottlenecks spending tremendous time on compliance and infrastructure and couldn’t get to the business technology problems. WyHy wanted to focus more time on growing wallet share and becoming more member centric.
WyHy first outsourced core and compliance, then outsourced marketing, social media, website, data analytics, marketing campaigns, and media buys. WyHy saw results quickly, starting with marketing. Five years into MDT (core system outsourcing), it saw a huge impact; outsourcing vendors forced best practices and policies. It no longer needed to hire resources in a remote area, and the credit union saw a much lower turnover.
“I wish we involved the vendor more in the process from the beginning instead of trying to do it ourselves,” Willingham said. “We ended up burning time trying to save some money, but ultimately it cost us money down the road.” Following outsourcing the core to MDT, WyHy outsourced IT infrastructure to Ongoing Operations and credit cards to PSCU.
WyHy’s board was not a part of the process. The credit union basically presented why it needed to move in this direction and then started moving.
In terms of member benefits, WyHy’s uptime is much better and things no longer go down. Moving forward, WyHy is looking to outsource accounting and consolidate the back office and collections.
Learn how your credit union can embrace outsourcing to become more efficient!