More CUs need technology plans

This issue is packed with technological information, and our story on how high-tech credit unions make technology plans (p. 38) might be the most important one for most credit unions to read.

Why? Because many credit unions are woefully unprepared to deal with technology. Only 23% of credit unions have technology plans, according to a new survey from our sister publication-Credit Union Executive. That's surprising, given that each credit union will spend an average $56,920 on technology in 1998-55% more than in 1996. These expenditures amount to about 4.5% of operating expenses, according to the Executive's 1997 Remote Banking and Technology Survey Report (available for $100 from CUNA's customer service department: (800) 356-8010, ext. 4157, or [email protected]. Stock No. 20572).

Credit unions are starting to pay more attention to technological developments. Nearly a third of credit unions now have staff specifically assigned to research technology. And three of 10 credit unions will spend money on technology training next year-up from two of 10 last year.

But problems persist, such as credit union preparedness for the year 2000. If you feel like you're behind schedule with this project, there's help. Your data processors are working on solutions, and CUNA has published information that's available free. All you have to do is get on the Internet, type www.cuna.org, and click on the year 2000 hot spot. There's plenty of material available to help you get started.

While you're visiting www.cuna.org, take a look at Credit Union Magazine's daily News Now and see how technology is dominating the news. Electronic benefits payments is a technology-driven issue. Human resource management is becoming tied into human resource information systems. Marketing is synonymous with marketing customer information files (MCIFs). Compliance, investments, lending ... and the list goes on.

Technology is the reason old rules for doing business don't apply anymore, say new members of Credit Union Magazine's editorial advisory board: Janice Dempsey, NuMark Credit Union, Joliet, Ill.; Lee Fogle, Duke University Federal Credit Union, Durham, N.C.; Lynn Nadeau, North Memorial Federal Credit Union, Robbinsdale, Minn.; and Judy Tharp, Founders Federal Credit Union, Lancaster, S.C.

Faster, better, cheaper, more customized, more specialized. What can't technology do? It can't make you plan for it.

If you're one of the 77% of credit unions that don't have technology plans, here's a suggestion: Follow the advice in our planning story that starts on p.38.

Copyright Credit Union National Association, Inc. Dec 1997
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