The credit union world is getting faster paced, like it or not. AI—and the slew of new fintech solutions powered by it—calls for nimble, tech-ready architecture to support it.
Legacy cores, while dependable, often lack the agility needed to keep up with the rapid evolution of fintech. That is, unless you love waiting a year or two for integrations…
Fortunately, the world of credit union core software is still evolving. New entrants are carving out niches in the credit union market. Read on to learn why you should keep your eye on Corelation, Nymbus, Ultracs, and Open Banking Solutions.
Not Your Grandparents’ Core
The leading core provider in the credit union industry has over 30 years of experience. Your grandparents were served by that core. Legacy cores are the backbone of the credit union experience for a large portion of the industry.
But the average age of a credit union member is 53. Younger people are gravitating toward fast-moving fintechs and big banks with great digital UX and fintech integrations.
You may want to keep your grandparents core to continue serving the members you have…
But if you want to support the digital needs of people under 50 (well over half the population of the US), then it might be time to think about getting a core that can keep up.
The Credit Union Core of Tomorrow (Today)
You’re already aware of the issues with the core of yesterday. It’s slow to adapt, for one. Also, because there’s relatively little competition, credit unions don’t get many options. That lack of competition breeds complacency among core providers.
Of course, it’s not all bad. Here’s what yesterday’s core brings:
- Data security and compliance. Legacy cores have been tested and proven. We’re talking secure data protection and support for meeting regulatory compliance challenges.
- Operational efficiency. Yesterday’s core is better than yesteryear’s core—all the big players include automation, reduced error, and ease of operation.
- Member experience. All of the big cores will provide some level of faster service, personalized products, and multi-channel banking support.
But what about the credit union core of tomorrow? One could argue that it’s already here. And tomorrow’s core already has all the above—often to a greater degree.
In addition to some improvements to the above 3, the core of tomorrow adds the following:
- Integration with fintech. Open banking APIs and partnerships with key fintechs offer a broader range of services and improved user experiences.
- Digital-first support. As more tech lives on the cloud—or works with AI—cores must be built to suit. Tomorrow’s core is.
- Flexibility and agility. Newer cores are more responsive to credit union feedback and strategic needs, often implementing changes in months instead of years.
This is to say nothing about cost comparisons, inbuilt operational improvements, or slow to adapt to CU needs and member expectations.
The credit union core of tomorrow is here today, and it’s being offered by several (relatively) new entrants to the market.
Introducing Corelation, Nymbus, Ultracs, and Open Banking Solutions
Okay, let’s talk new cores. Or, if not new new, at least pretty new. Not your grandparents’ core, at least. So, new.
- Corelation is specifically built for credit unions and features a staggering array of inbuilt features.
- Nymbus says they can power any size digital institution in under 45 days.
- Ultracs is leaning into AI and self-service banking capabilities. Open Banking Solutions is the industry’s first proven SaaS cloud banking platform and they’re highly fintech enabled.
- Mambu is a SaaS core, thus cloud-native, API-driven, and ready for CUs, banks, fintechs, and even small businesses.
These cores are built for agility, scalability, and seamless integration with the burgeoning fintech ecosystem. In a world where most people under 50 are extremely fintech-friendly, this is crucial for credit unions that want to stay relevant.
More importantly, these cores address specific gaps in the market—especially niche spaces within the credit union sector that have historically been underserved. With the ability to tailor operations and member experiences in ways previously unattainable, credit unions can now operate with an unprecedented level of autonomy and precision.
We’re not saying that these three cores are the future. Not necessarily…
But we are saying that these three cores are blazing the trail into the future. Everyone who doesn’t follow will be left behind.
Learn more about FintechOS here:
Why You Should Care (Even if You Don’t)
Okay, but what if you’re happy with your grandparents’ core? It still works great for you, right?
Here’s why you should care anyway:
New core solutions introduce competition into the world of credit union cores. Instead of competing against themselves, they’re now competing against cloud-based AI fintech monsters that want nothing more than to evolve the space.
Your core will get better just because there’s competition. Unless you don’t believe in capitalism at all, in which case… what are you doing in the finance sector?
Furthermore, new cores enable a lot more than just credit union choice. They empower a whole new customer-centric approach to choosing your credit union core. With options, CUs can choose the core software that aligns with their own strategic roadmap—rather than the roadmap of their core provider.
Want to Hear More about new CU Tech?
By now, the question should no longer be, “why?”
It should be, “why not?”
Why settle for the status quo when the credit union market—and their members—are calling for innovation? The arrival of new tech is consistently shaking up the industry, challenging the traditional, and making way for the extraordinary.
If you want to see more of what the future holds today, join us! We offer free tech scouting in personalized, 30-minute calls once each quarter.
Learn more and sigh up here: https://cu2.wpenginepowered.com/fintech-call-program/
