check out - Synergent

Competitiveness
and Capabilities
Seven reasons to consider outsourcing
your credit union’s core processing
Strategy Paper
ABOUT SYNERGENT
Synergent is a credit union-owned service organization that directs considerable resources toward
the success of our credit union partners, beginning with the industry-leading Symitar Episys®
core processing system. This commitment is evident across all our divisions, including Technology
Services, Payment Systems (Card Services and Check Processing), and Targeted Marketing Services.
Unlike many core processing vendors, Synergent is first and foremost a service organization, not
a software developer. Thus, instead of marketing “our solution,” our focus is on “your solution.”
Our unique strength is our ability to integrate our services with those of third parties to develop
a processing solution customized for your strategic objectives. Over the past decade, we have
completed more than 60 successful credit union conversions to the Episys platform.
Just as important as this advanced technology is the service and support we provide with it.
Commenting on our team approach, Debbie Guiney, CEO of AllCom Credit Union in Worcester,
MA, said, “In just one email, a member of our staff can reach our Technology Services Account
Relationship Team at Synergent and, as a result, we reach the right person on the first try.
We know our questions are taken seriously. This team has become an extension of our credit union
staff, and there is true mutual respect between both groups.”
Your core processing system is the heart of your credit union. Chances are, you’ve been relying
on it to enable and track members’ transactions for years. And that’s the problem. Older core
systems were not built to manage 24/7 member relationships that are constantly evolving.
Today’s members expect the superior personal service that has always characterized credit
unions, but they also want the same advanced services offered by the nation’s largest financial
institutions. A fast-growing number of current and prospective new members are ready to
take advantage of mobile banking and bill payment, remote deposit capture, and new
products and services still on the horizon. In order to stay competitive, many credit unions will
need to take a hard look at current core systems that are outdated, inefficient and expensive
to operate.
THE KEY DECISION: DIY OR OUTSOURCE?
Doug MacDonald,
Vice President of Direct
Marketing Services, talks
about the Synergent team.
Should you replace an outmoded in-house system or outsource core processing? You may
be understandably reluctant to write off your credit union’s past investment in in-house
information technology, but this isn’t just an issue for your IT executive. It’s a fundamental
strategic question.
As your credit union and its board determine how to guide your institution to handle changing
market forces, regulatory developments, competitive variables, technology innovations and
security issues, you may decide to replace your back-office operations with the capability of
a service partner who provides an “under one roof” core processing solution. In this paper,
HRCU, Rochester, NH, is
profiled using Episys.
To watch our video
case studies, please visit
synergentcorp.com.
we suggest seven reasons to consider Synergent.
1.
I M P R O V E C O M P E T I T I V E N E S S B Y U S I N G T H E L AT E S T T E C H N O L O G Y
“Technology changes so fast now that members benefit when their credit union decides to
share this work with experts, so they can concentrate more fully on their needs,” said Richard
Dupuis, CEO at Five County Credit Union in Bath, Maine.
Up-to-date technology is a major competitive selling point. “Partnering with a service provider
allows us to offer the products and services necessary to say ‘what we offer is just as good as
any of the biggest financial institutions,’” Dupuis added. “Being able to offer the latest and
greatest in products and services works for us as a terrific cross-selling and member recruitment
tool.”
Today’s technology is complex. Over time, an in-house operation may struggle with hardware
The Power of
PowerON in the
Service Bureau
Environment
that has become less reliable and software that is no longer supported. The capital and human
Synergent uses
At Synergent, our focus has always been to work with credit unions to find the best solution,
a tool called
develop customized enhancements as necessary, and then focus on the best possible delivery
PowerON to
and servicing of that solution. We work closely with core processing company Symitar on
customize programs
product enhancements, collaborating on requests about our credit union partners’ system
and modify the
Episys core
processing systems
in a multitude of
ways. We can, for
example, design
resources required to maintain and upgrade this aging system can prevent a credit union from
capturing growth opportunities in the marketplace.
needs. Our partners’ collective importance gives us tremendous influence in Symitar’s Episys
enhancement request process.
A P O W E R F U L P L AT F O R M W E ’ V E M A D E E V E N B E T T E R
Synergent has also improved the Episys platform by incorporating value-added efficiencies for
and create data
credit unions, such as an SSN profile showing the extent of each member’s relationship, date
screens, create
utilities for calculating interest rates and dividends, share/loan summaries, a loan application
user-defined
expiration utility and club transfer notices for mailing to members. These products are provided
inquiries for
at no extra cost to Synergent users.
reporting, and
upload data files
The Episys platform offers a great deal of efficiency and support, with clear, data-rich, front-line
and thus build
screens, structured workflows, electronic forms, and an online archive. By adding such
interfaces with
integrated solutions as Jwaala Better Online Banking, Access Softek Mobile Banking, Ensenta
other systems and
Mobile Check Deposit, MeridianLink Opening Act Online Applications, Verafin BSA, Fraud,
integrate data from
and AML Solution, and iPay Integrated Bill Payment & Presentment, Synergent can create a
multiple sources.
customized core solution that will help you move your credit union forward in even the most
This programming
with Synergent’s
competitive environment.
support gives credit
Training is a critical but often overlooked part of optimizing usage of a core system, and it’s
unions maximum
a discipline that our credit union support teams practice every day. We deliver, support and
freedom to adapt
continuously teach our partners how to use the Episys solution to handle their evolving needs
the core platform to
and maximize their investment within the “core.”
their requirements.
S TAY I N G U P - T O - D AT E
As a service organization, Synergent has to stay current with technology in order to support
the current and future needs of our credit union partners. Assisted by their input, our team of
experts works full-time on technology solutions and upgrades.
Once a year, we host a technology workshop to introduce new products, services, and third
party vendors to our partners. Our Technology Services Users Committee made up of credit
union representatives helps us determine what products credit unions are looking for, so we can
be ready to provide them.
As Synergent Account Executive Fred Barber points out, “In addition to ensuring each credit
union is using the solutions currently provided, we also work hard to keep them informed of
other solutions we offer when there are goals or challenges that they must meet.” Building on
Episys’ flexible customization features while factoring in our own and third-party services as
Fred Barber
Account Executive
appropriate, we can create solutions that will support future strategic initiatives and enable you
to grow more efficiently.
2.
BENEFIT FROM ECONOMIES OF SCALE
Outsourcing with Synergent is as cost-effective as it is because of our ability to automate,
streamline, and consistently deliver the highest service levels of Episys. This helps larger credit
unions manage their complex operations more efficiently. At the same time, the expanded
range of functions and services we provide makes it possible for smaller credit unions to
compete more effectively.
While technology is certainly key to an efficient core processing platform, the partnership with
the provider is what will truly ensure that a credit union is taking full advantage of all that their
“core” has to offer. “If we didn’t have Synergent, we may not have known all the shortcuts that
make life easier,” HRCU’s COO Rosemary Shields said. “We don’t have to hold back on
getting the information and reports we need. We can truly utilize all that is available to us.”
For Shield’s credit union in Rochester, NH, these efficiencies and improvements included an
enhanced general ledger, user- friendly help boxes and other shortcuts. The ability to work with
Rosemary Shields
Chief Operating
Officer, HRCU
members from beginning to end of a process with a dynamic loan application and a strong
integration creates efficiency. So much of the core allows processes to become “one-stop
shopping.” What would’ve taken months to accomplish now takes weeks, adding that because
even new staff members can easily learn the processes, the credit union has been able to have
loan officers in every location, as well as diversify their loans.
The ultimate result of these efficiencies? Better member service, as all staff has more time to
focus on the members. “Our internal service changed 100 percent for the better, as we are now
able to streamline our processes, and can clearly define all staff’s roles,” Shields added.
3.
G A I N S I N G L E - S O U R C E A C C O U N TA B I L I T Y
Control and ownership are often given as reasons to prefer in-house core processing. But if an
in-house system is supported by several vendors, as is often the case, it can take time to find
which vendor is responsible for a particular issue.
When you work with Synergent, there’s no need to call in three or four vendors to resolve an
issue. We put all our resources into delivering a single powerful, flexible core processing system
and supporting it 100%.
By looking for solutions within the Episys system instead of going outside, we help you get
more from your technology investment. Our relationship with third-party vendors streamlines
the process of implementing the products on your wish list. When a peripheral or third-party
service or program is required, we make sure it will integrate tightly and totally with Episys and
with your own environment. Another great advantage of outsourcing is the utility aspect of the
processing environment—with outsourcing, credit unions can plug in to only use those services
they need.
You benefit not only from all the advantages of new capabilities, but also from working with
one provider to meet your current and emerging member needs. The effect of this singular
partnership is to take pressure off your IT team and free up their time to pursue other
objectives. As Dupuis of Five County CU explained, “Our member support staff knows they can
reach out to [Synergent] at any time for support and technical assistance.”
ACCESSING YOUR INVESTMENT
To make sure you benefit from everything Episys has to offer, we conduct a utilization review
once you have had experience with the system.
On an ongoing basis, we also measure our credit union partners’ satisfaction with our service
delivery. This annual survey, which is tied to our employee performance program, tells us how
we are doing and where we need to improve. Each of our partners provides commentary, while
rating their satisfaction level with all Synergent divisions. Over the past seven years, Synergent
has received an average of 100% satisfaction ratings in all five categories: quality, delivery,
professionalism, growth and responsiveness.
4.
S AV E S TA F F R E S O U R C E S
From supporting workflows to training staff, an in-house IT department may be pulled in many
directions. Your staff may have to manage multiple vendors. On top of that, IT staffing itself
tends to be much more difficult than hiring a loan officer or teller. Turnover can be high, since
there are fewer in-house career paths available to these professionals.
With the right outsourced system in place, your management and staff will be relieved of repetitive manual tasks and low-value interactions with members. Instead, they can focus their time
on activities that provide more value to current and prospective members.
“We were responsible for everything — our in-house system required more staffing, who had
to be very knowledgeable,” said John Reed, CEO of Maine Savings Federal Credit Union
in Hampden, ME, which switched to Synergent from an in-house system. “With today’s
technology, moving to [Synergent] allows us the time to have more focus on our members.
It has also been a good financial move for our credit union.”
“[Synergent] has an entire team dedicated to supporting our needs,” said Five County CU’s
Dupuis. “There’s no need for us to worry about keeping a large internal staff. They have more
resources, more time and more expertise.”
5.
SHIFT THE COMPLIANCE BURDEN
These days, the cost and impact of regulatory issues drives many business decisions. FFIEC and
other regulatory agencies and auditors are spending increasing amounts of time examining
credit unions. Because of the availability of the “third-party audit,” outsourced core processing
has become an even more attractive choice.
At Synergent, we leverage our own resources to work closely with regulators, freeing up your
staff to focus on other areas of operations. The SSAE16 that we provide annually to each of
our credit union partners includes all the documentation pertinent to data processing that
regulators require.
6.
S E C U R I T Y, D I S A S T E R R E C O V E RY A N D B U S I N E S S C O N T I N U I T Y
Equipment failure, drive crashes, network outages — nearly every in-house manager faces
these issues on a regular basis. An in-house system must also integrate with fraud detection,
multifactor authentication, optical storage, and other reliability factors. Synergent can lift that
burden from you and take accountability for it.
Synergent’s formula
for addressing
In the event of a disaster that incapacitates our Credit Union Service Center in Westbrook,
compliance takes
Maine, we operate a fully redundant Pineland Operations Center in New Gloucester, Maine,
the expertise of
from which we can quickly restore Episys service. Besides ensuring that a major outage will
Symitar’s
have minimal impact on your credit union and its members, we also provide periodic full-scale
compliance team,
business recovery testing at no additional charge.
legal professionals,
and programmers,
For Matt Walsh, CEO of University Credit Union in Orono, Maine, business continuity protection
and incorporates
is a vital part of Synergent’s appeal. “Since we made the decision to allot this work to a service
our staff’s review,
provider, my staff and I sleep soundly at night,” he said. “Knowing someone is there with the
analysis and
technical expertise required should something not work is a great feeling.”
communication to
help your credit
union decipher
exactly what needs
to be done when
7.
F O C U S O N W H AT Y O U D O B E S T: S E R V I N G M E M B E R S
Outsourcing also provides an opportunity for credit unions to foster a stronger internal culture
by focusing on the business they know best: member service, recruitment, retention, and sat-
operating the
isfaction. Rather than becoming bogged down in the high-tech hassles that can come with in-
Episys platform.
house processing, along with new releases and year-end processing, credit unions that partner
The process of
with a service provider can let it go and devote full attention to their member base.
tracking regulatory
“It’s a great benefit to not have to worry about IT issues,” said AllCom CU CEO Guiney.
deadlines and
gathering report
data from many
systems, as well
as the core, can
actually take your
staff’s focus off of
efficiency and
member service.
“Our time is free to concentrate on serving our members and addressing their needs.”
With Synergent managing your data,
you can manage your credit union better.
In today’s marketplace, you need a core processing system that delivers speed,
convenience, and efficiency, leverages technology, and provides regulatory relief.
This kind of continuously-optimized system will pay off in several ways with productivity,
cost savings, and competitiveness:
• More innovative products
• Efficiencies including structured workflows, elimination of duplicate efforts, and
paperless communication
• The ability to leverage data for strategic marketing, better-informed business
decisions, and a stronger sales culture
• A fully integrated environment that streamlines processes, automates routine
tasks, eliminates manual and double entry of data, and frees up staff and
management to focus on member service and growth
Today Synergent operates from a position of strength in all of these areas. We do this
in the short term by meeting our service commitments every day. In the longer term, we
do it by interacting with credit unions and vendors to make sure you have the solutions
you need to grow and compete.
One of our credit union partners expressed it best. “Synergent provides a level of
service to credit unions that is hard to match,” said Normand R. Dubreuil, CEO of Maine
State Credit Union in Augusta. “I can truly say when comparing customer service with
other companies, you appreciate Synergent staff’s accurate, quick response, and it is
from a professional who is knowledgeable about our industry. Synergent was created for
credit unions by credit unions.”
www.synergentcorp.com
800.341.0180
PO Box 1236, Portland, Maine 04104
Episys is a registered trademark of Jack Henry & Associates, Inc.
Strategy Paper 9/2014 · 83831