Upgrading Your Core

As member expectations shift and digital-first experiences become the norm, updating your credit union’s core system is essential to remaining relevant, resilient, and responsive.

Next-Gen Core Platforms: A Competitive Advantage

Platforms built on cloud-native, composable architectures are changing the way credit unions operate. They offer:

• Scalability and performance to support growing member bases.
• Real-time data orchestration that enables smarter fraud detection, personalized lending, and proactive financial wellness tools.
• Modular deployment, allowing you to evolve incrementally without the disruption of a full system overhaul.

This shift away from monolithic systems empowers you to innovate continuously, deploy new features rapidly, and respond to member needs with agility.

Building a Contemporary Core Is Easier Than Ever

Historically, credit unions have been cautious about core conversions due to cost, complexity, and risk. But that’s changing.

A composable core architecture allows for incremental upgrades, which reduces both financial and operational risk. If a challenge arises, it can be isolated to a specific module so there’s no need to disrupt the entire system.

Modularity is a game-changer, especially if you want to upgrade without compromising service continuity.

Aligning Core Strategy With Member-Centric Goals

To succeed, your efforts to design a next-generation core system must align with your broader mission: serving members. That means:

• Mapping core capabilities to strategic goals like improving member engagement, expanding digital services, and enhancing financial wellness.
• Prioritizing features that deliver immediate value — such as real-time payments, AI-driven insights, and mobile-first experiences.
• Building a roadmap that reflects member needs, regulatory requirements, and operational realities.

Data Strategy: The Next Frontier

A recent American Banker survey of more than 200 financial industry leaders found that despite the growing importance of data, many credit unions still lack a formal data strategy or acknowledge that there is significant room for improvement.

• A robust data strategy enables:
• Personalized member experiences
• Predictive analytics for lending and risk
• Streamlined compliance and reporting

And while a next-gen core can unlock real-time data, it’s crucial to recognize that without a clear strategy, that data will remain underutilized.

Freeing Up Budget From Legacy Systems

Legacy systems consume a disproportionate share of IT budgets. In fact, statistics show that up to 90% of credit unions’ technology spending still goes toward maintaining existing infrastructure. And that leaves little room for innovation.

By shifting to a more agile core, you can redirect resources toward growth initiatives like digital onboarding, embedded finance, and AI-powered member services.

But technology alone isn’t enough to help you remain competitive in an evolving financial landscape.

Talent shortages remain a top concern, with many credit unions citing gaps in digital expertise and change management capabilities. Investing in workforce development — especially in cloud, cybersecurity, and data analytics — is also essential for long-term success.

A Change Is Gonna Come …

Credit unions are at a crossroads: either adapt to the changing landscape or risk falling behind.

According to the 2025 Strategy Benchmark – an online survey of 149 financial institution CEOs – the shift toward digital transformation has already begun. Over the next two years:

• 30% of credit unions plan to include a public, cloud-native core in their strategic plans.
• 47% of credit unions plan to increase tech investments between 6% and 10%.
• 35% of credit unions plan to invest in AI-based tools and technology, and 36% put digital banking and automation at the top of their list of business priorities.
• Credit unions will increase investment in modern platforms that offer better visibility and control due to cybersecurity and fraud concerns.

By embracing a next-gen core platform, you can deliver the seamless, secure, and personalized experiences your members expect, while building a foundation for sustainable growth.

Start Your Journey

There’s no time like the present to begin modernizing your credit union’s operations. By embracing this revolution, you can capitalize on short- and long-term opportunities for growth, sustainability, and enhanced member satisfaction.

Let Jack Henry™ help you navigate the process for your credit union. The tools are available, and the path is clear – and the future of member service depends on it.