Core Banking Solutions for Small Credit Unions

by Bart Narter,  Stephen Greer, June 29, 2011
Vendor Reviews
North America


Core banking is the nerve center of a credit union. Credit unions, with the help of platform vendors, have been able to leverage Internet technology to handle transactions.

Most of the paper-based transactions of the past have been replaced by digital alternatives. Automation has introduced a new level of efficiency and productivity. What had existed as a disparate group of branches is now a networked entity operating as a whole.

In a new report, Core Banking Solutions for Small Credit Unions, Celent compares a range of solutions that have implementations primarily with smaller credit unions, specifically those in which more than 90% of the credit union customers have assets less than US$500 million. Celent has created a map of core banking vendors and then ranks these vendors on its ABCD analysis. XCelent awards are given out to the leading solutions within four categories.

Last year, around 10% of credit unions sought to switch their core system, up from historical averages of 4–5%. Opportunity exists where smaller credit unions look to upgrade an outdated legacy system or to consolidate processing to a single vendor following a merger or acquisition.

According to Bart Narter, Celent Senior Vice President and coauthor of the report, “The core banking market for credit unions looks increasingly more complex, with product sets and channel offerings becoming a crucial landscape for competing in an ever-expanding financial services industry. Credit unions are continually looking to maximize their product offerings with more efficient and flexible core systems.”

This is one of two reports covering core banking solutions for credit unions. The second report, Core Banking Solutions for Large Credit Unions, will look at vendors with implementations in larger credit unions, specifically those in which at least 10% of their customer base has more than $500 million in assets.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
Tel: +1 212 345 1366

Europe (London)
Chris Williams
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary



Classification of Vendor Solutions


ABCD Analysis and XCelent Awards



The XCelent Awards



XCdlent Technology and XCelent Functionality



Credit Union Features


FIA Mercury


Advantage from Fiserv


Charlotte from Fiserv


CubicsPlus from Fiserv


CUSA from Fiserv


Galaxy from Fiserv


Fiserv’s OnCU


Fiserv’s Portico Platform


Reliance from Fiserv


Jack Henry / Symitar’s Cruise


Trinergy LLC




Leveraging Celent’s Expertise



Support for Financial Institutions



Support for Vendors


Related Celent Research


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