Long-Term Relationship: Credit Union Sticks with Vendor for 20 Years

Kevin Jepson
April 5, 2010 | COMMENTS

GFA Federal Credit Union in Gardner, Massachusetts here has twice as many branches as it did five years ago, yet the $300-million credit union has stayed with the same core processor for more than 20 years and has never employed an in-house IT specialist.

"The cost-benefit for in-house technology just doesn't make sense," explained Kelli Mason, vice president of sales and service at the eight-branch credit union. "You'd think there'd be a reason to bring IT in-house as we got bigger, but COCC is able to support us as we grow."

Nearly 95% of GFA's IT services are provided by Avon, Connecticut-based CUSO COCC or through its 32 partners, and include the core system, Internet banking with personal financial management and person-to-person payments, audio response, item processing, statement rendering and, soon, document imaging, said Mason.

Quick to Market

GFA is quick to market with new products because of COCC's support, she continued. "They give us all the tools we need to retain members by helping us efficiently bring new innovations to the table." GFA was the first financial institution in the local market offering home banking and debit cards, she said.

Fusion Savings, a savings account that's eligible for a "double-your-balance" monthly drawing, went from concept to delivery in less than 90 days, she said. "We worked with COCC to encourage members to save money via a savings vehicle with a twist." The product drew 67 accounts in its first month, January 2009, and has since grown to 644 accounts with $685,000 in balances, she said. About 40% of all Fusion Savings account members are under age 25, and the average balance is more than $1,000.

GFA members can move through the teller line faster now because of an upgrade to the COCC teller system, Mason added. The average transaction time dropped more than 25% since the August release, even as volume increased by up to 50%, according to Tina Sbrega, GFA CEO. "Our teller staff is afforded more of the interaction time to engage the member," said Sbrega. Assets grew by 7.26% last year, whereas the number of full-time employees increased by only 5.26%, due to technology efficiencies, she said. Tellers no longer toggle between multiple screens and systems for access to member-relationship information, said Mason. "You can complete several transactions or queries in one screen with fewer clicks." Employees can create speed menus for their most common transactions.

Plowing $770K Back into Products and Services

COCC will return more than $770,000 in product and services credits to clients in 2010, the firm said. "It's a unique way that COCC is helping clients move forward and make technology more affordable," Mason suggested.

GFA would like to use its credit for an imaging platform or for on-site support. GFA leans on COCC for daily technical support, she said. "I can call people directly at COCC in various specialty areas. Customer service is an area where they excel."

COCC support means that GFA can limit its in-house IT staffing to a division head, who actually oversees multiple divisions, and a new full-time employee who addresses routine IT tasks. When GFA is looking for new technology, the credit union turns to COCC for advice. "COCC will bring their own solution to the table, but they'll also recommend multiple third party platforms with references," Mason said.

This article appeared at www.cujournal.com and is reprinted with permission.