Data, Data, Everywhere: Core Processors and Proposals for Collaboration and Data Integration in the Credit Union SystemTaylor C. Nelms, PhD, Filene Research InstituteBill Maurer, PhD, UC IrvineStephen C. Rea, Postdoctoral Scholar, UC Irvine

• In a financial services ecosystem where data are more important than ever, credit unions need core providers who can help them collect, store, and manage data efficiently and cost-effectively.

In order to move the credit union-core relationship forward in a productive way, stakeholders must understand each other’s needs and competencies around data.

COMPETENT DATA MANAGEMENTT H E B I G I D E A

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Two trends affecting the credit union-core relationship:

SHIFTING RELATIONSHIP DYNAMICSK E Y C O N C E P T S

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Consolidation (of both the credit union system and the number of core providers).

The “fintech explosion” and increasing reliance on third-party service vendors as key parts in credit unions’ digital strategies.

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INTEGRATE

INTEGRATE YOUR DATAK E Y C O N C E P T S

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Innovating member services begins with data integration.

AUTOMATE INNOVATE

DISAGREEMENTS IN DATA INTEGRATIONK E Y C O N C E P T S

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• Credit unions and core providers agree that open APIs and data architectures help to streamline integrations, but disagree about how best to implement these tools.

Access to data and support for data analysis are also points of contention.

OPPORTUNISTIC OR VULNERABLE?C R E D I T U N I O N I M P L I C A T I O N S

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How can small credit unions overcome obstacles associated with size and capacity?

DISRUPTORSC R E D I T U N I O N I M P L I C A T I O N S

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Will an organization from inside or outside of the credit union system disrupt the core processing market?

The future of the credit union-core relationship will be determined by how these two stakeholders—with input from service vendors—can agree upon the best way to integrate data in a single source without compromising integrity, security, or speed.

RELATIONSHIP PLANNINGC R E D I T U N I O N I M P L I C A T I O N S

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DATA TRUSTSF U T U R E S C A P I N G

digitalpublic.io

DATA TRUSTSF U T U R E S C A P I N G

Data as fuel vs data as property

DATA TRUSTSF U T U R E S C A P I N G

A model for cooperative data associations?

DATA TRUSTSF U T U R E S C A P I N G

Credit Union Data Trust and Algorithmic Observatory

credit union data commons

collaborative audit of each others’ use of AI/algorithms

DATA TRUSTSF U T U R E S C A P I N G

Filene thanks its sponsors for their significant contributions to Filene’s Center for Emerging Technology and for helping to make this research possible.

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T H A N K Y O U

ACKNOWLEDGEMENTS