Core Dissatisfaction, Back-out Plans & Choosing Cybersecurity Vendors

Core Dissatisfaction, Back-out Plans & Choosing Cybersecurity Vendors

Welcome to The CU Leadership Mixtape, the newsletter serving up insights and takeaways from our Grow Your Credit Union podcast. Here, you'll discover fresh perspectives and practical tips from leaders in the credit union movement. Join the community to learn, grow, and stay ahead.

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Can Credit Unions Overcome Core Technology Limitations to Stay Competitive?

In the world of credit unions, where loyalty and community spirit reign supreme, there’s an uncomfortable truth emerging: legacy core systems are holding back progress.?

No one knows this better than Matthew Fehrmann, CIO of Kohler Credit Union. Despite recently upgrading their core system, Fehrmann admitted, "We were still fighting the same challenges that we were fighting in the previous core."

It’s a statement that should send a shiver down the spine of any credit union executive.

It’s time to ask the hard questions and, if necessary, make the harder choices to ensure your core technology is not a relic of the past but a catalyst for the future.

Takeaways

  • Rethink core system strategy—optimization over replacement
  • Emphasize speed and integration capabilities
  • Prepare for the web 3 shift with a headless core

???? Listen To Matthew's Episode

Source: Modernize or Optimize? That Is the Core System Question - Elizabeth Hollis

Why You Need A Strong Back-Out Plan in Fintech Partnerships

When credit unions partner with fintech startups, it’s a high-stakes game balancing innovation with risk management.

Becky Reed , COO at BankSocial , explains her no-nonsense approach to a strong, rehearsed back-out plan saying, "It should be so ingrained in your team that when something happens, they should be able to enact the plan and start moving together towards the resolution."

This isn’t about having a document collecting dust in a file; it’s about running drills and practicing responses as routinely as you would for physical security. A proactive plan ensures your credit union can pivot seamlessly, maintaining member trust and service quality when the unexpected happens.

Takeaways

  • Emphasize strong back-out plans
  • Integrate regular drills for tech failures
  • Expect and prepare for unexpected failures


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Behind The Data

Behind The Data is our new podcast segment brought to you by Filene Research Institute. It offers exclusive access to Filene’s groundbreaking research, providing credit union leaders with actionable insights to anticipate trends and drive growth.

What Does The Open Banking Rule Really Mean For Credit Union leaders?

The Consumer Financial Protection Bureau 's finalized Personal Financial Data Rights Rule, aka Section 1033 or “open banking,” is set to shake up the financial landscape with compliance deadlines stretching from 2027 to 2030.?

While initial estimates from Filene suggest only 11% of credit unions will be directly impacted, that 11% holds nearly 80% of all assets and over 75% of members.

The story behind the data?

The big players are on the hook, but the ripple effect will pressure smaller credit unions to adapt or risk falling behind.

Expect tighter competition, new tech requirements, and a shift in how members engage with their credit unions. Core tech providers and partners will be pivotal in navigating this new era.


How Do Credit Union Leaders Find The Right Cyber Security Vendors?

Picking the right cybersecurity vendor isn’t a box-checking exercise—it’s survival.?

Matthew puts it bluntly, "I don't just want that phone call at three o'clock in the morning. I want a cybersecurity vendor that can actually do something about it.?"

Partner with vendors who don’t just monitor threats but actively respond to them, minimizing potential damage and downtime.

Becky’s warning should echo in every boardroom:

The existing Web 2 infrastructure is already compromised to the point where it really can't continue into the future safely much longer.

Credit unions need to think beyond today’s systems and start exploring Web 3.0 technologies, which bring decentralized solutions capable of better protecting member data.

Takeaways

  • Choose cybersecurity vendors that take action, not just alert
  • Understand that your greatest risk might be your vendors
  • Educate and prepare for the future of security with web

Source: Cybersecurity and Credit Union System Resilience Annual Report to Congress - NCUA

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Artificially Intelligent Jokes

PROMPT: if I don't update my core, whats the worst that could happen?

AI:

Those floppy's don't look OSHA approved

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