Tessa Surcouf, Sales Manager, ERI
Credit unions are entering a pivotal phase in their evolution. Faced with intensifying regulatory requirements, operational inefficiencies, and the need to attract a new generation of members, they must rethink their entire operating model. Incremental improvements will no longer suffice; what is needed is a realignment of systems and processes, placing the core platform alongside the member at the heart of the transformation journey.
So, what should a credit union do when confronted with multiple simultaneous challenges? As anticipated, rethinking the core is the logical starting point. Let’s begin by examining operational considerations. One persistent challenge is treasury operations. Despite their importance to liquidity management and compliance, many credit unions still depend on manual cash handling, fragmented processes, and limited real-time oversight. Real-time treasury capabilities embedded in modern core systems provide instant cash positioning, liquidity forecasts, and multi-entity oversight; this is essential to manage cross-organizational activities and mitigate regulatory risks.
This takes us to risk management, particularly collections, as they represent another area requiring sharper focus. Traditional collections methods, reactive and paper-based, are no longer sufficient. Credit unions adopting automation and analytics can improve early risk detection and streamline communication strategies with members, thus safeguarding both asset quality and member relationships.
Another critical operational process, and a core activity for credit unions, is member lending, encompassing everything from loan origination to the processing of transactions and supporting documentation. Lending processes require modernization, as they currently depend on manual workflows executed across fragmented systems, resulting in error-prone operations and unacceptably long origination times. Yet automation in credit decisioning and underwriting is now accessible and necessary. Open banking APIs enable instant access to applicant financial data, reducing processing time from days to hours, while improving underwriting consistency and scalability.
When discussing “waiting lines” and prolonged processes, the conversation naturally shifts to member experience, member retention, and, critically, member growth. Digital onboarding remains a stumbling block for many CUs. Too many digital account openings are abandoned before completion due to friction in the process. Straight-through processing that unifies ID verification, KYC, and account setup, directly supported by the core system, can dramatically improve conversion rates and member satisfaction. Seamless onboarding has become a baseline expectation, particularly among younger, digitally native members whom credit unions must attract.
The need for real-time capabilities extends well beyond lending and treasury. Today’s members expect instant payment confirmations, real-time account visibility, and immediate fraud attempts alerts. Batch processing, still present in some core systems, is increasingly a liability. Studies have shown that real-time digital infrastructure has become a baseline requirement in financial services, directly linked to operational agility and customer satisfaction.
Meanwhile, multi-entity and multi-currency functionality is essential for credit unions involved in complex organizational structures or cross-border activities. Credit unions, whether managing Credit Union Service Organizations (CUSOs) or multinational operations, need core platforms that support consolidated reporting, seamless intra-group transfers, and currency management, eliminating costly manual workarounds. Scalable, flexible systems are essential to break down data silos and maintain regulatory compliance across regions.
Enhancing member centricity is no longer simply about offering personalized products; it is about anticipating needs and proactively delivering value across every touchpoint. By leveraging real-time data and AI-driven insights, CUs can now tailor financial advice, product offers, and service recommendations to individual preferences, even before the member explicitly expresses a need.
Ultimately, this is not merely a technology shift but an operational realignment, where core systems transform from back-office engines into strategic enablers of growth and resilience. Those credit unions that seize this moment will be best positioned to thrive amid regulatory shifts, competitive pressures, and changing member expectations.