Synergent Blog

Best Practices for Core Conversions and Third-Party Integrations

Jan 23, 2025 | Blog, Core Processing

(As seen on CUInsight) – You need a new core. Perhaps it’s because your existing core is being sunset, or maybe it simply is no longer the right fit for the products and services you offer or plan to offer in the future. So, where do you start? While the process may seem daunting, there are steps you can take from the start to streamline the experience for both your credit union and your members.

Core conversions are always a significant undertaking for credit unions, often involving multiple parties, third-party vendors, credit union staff, and—most importantly—your members. A successful conversion requires thorough preparation, clear communication, and robust strategies to address or, preferably, avoid potential challenges. Below are key elements to guide your organization confidently and effectively through this complex process.

Partnership: Finding the Right Partner

Selecting the right core partner is crucial for long-term success. A true partner—one that is genuinely invested in your credit union and its membership—can significantly impact the outcome of your conversion. Look for partners who understand your goals, values, and priorities, and who will remain committed to your success throughout the project.

Member Impact & Communication

Your members are at the heart of your organization, making their experience during the conversion the most critical consideration. Assess the technology, services, and user experience changes that the conversion entails. Overcommunicate through all available channels to keep members informed about what to expect, emphasizing the benefits and value this upgrade will bring to their experience. A continuous communication strategy is key to maintaining member engagement and satisfaction.

Budget Planning

Core conversions impact more than just the core system—they often involve numerous third-party vendor relationships. Begin by gathering and reviewing all vendor data to understand the scope of potential financial impacts. Ensure your budget accounts for these integrations and prepare to share this data with stakeholders early in the process to streamline coordination.

Subject Matter Experts (SMEs)

Identify and designate internal SMEs for key areas of the conversion. Establish clear objectives and deadlines for each SME to ensure tasks are completed on schedule. If resources permit, consider hiring a dedicated project manager—whether internal or external—to guide project activities and monitor potential delays. This will help the project stay on track and meet deadlines.

Data Accuracy

A clean and accurate database is essential for a smooth conversion. Inconsistent or inaccurate data can lead to significant cleanup efforts and hinder system functionality. Validate and standardize your data early in the process to ensure it maps correctly into the new system and performs as designed.

Timeline Coordination

Aligning deconversion and delivery dates for data files with the new core provider is a critical step. Provide adequate time for data analysis, mapping, and validation through multiple levels of testing. Compressed timelines increase risk and the potential for negative impacts, so prioritize sufficient time for these activities.

Product Set Alignment

Review and document your product offerings—including accounts, shares, and loans—to ensure alignment with member disclosures and system capabilities. Misalignment can lead to calculation errors, financial discrepancies, and long-term operational challenges. Address these issues ahead of the conversion to avoid downstream complications.

Member Support Strategy

Expect increased member outreach during and after the conversion. Members will seek assistance with digital access, account inquiries, and general questions. Prepare for this by bolstering your call center or online support team, assigning additional staff, or integrating external call center resources. A well-developed strategy to manage increased communication ensures that your members’ needs are met efficiently.

Vendor Management

Identify all third-party integrations and file movements in advance. If your credit union does not currently use a vendor management tool, begin by compiling a list of vendors that includes their services, main contacts, and communication details. Do not overlook seldom-used vendors, as their systems may still be affected during the conversion process.

Operational Alignment

Document how your credit union delivers services to its members and how these processes align with your current core system. During the conversion, review and revise these procedures to ensure alignment with the new core platform. Consistency in member service, data input, and operational workflows is essential for a smooth transition.

Conclusion

Successfully navigating a core conversion requires collaboration, foresight, and meticulous planning. By prioritizing the selection of the right partner, maintaining a member-first approach, ensuring budgetary and operational readiness, and aligning all involved parties—both internal and external—you can set the stage for a successful conversion that benefits both your credit union and its members. With clear communication, clean data, and strong project management, your organization can turn the complexities of a core conversion into an opportunity for growth and enhanced service.

About the Author

With over 25 years of business and credit union experience, Jennifer Berry is a go-to core and consulting expert who is skilled in operations, leadership, third-party integrations, and Jack Henry™ Symitar® core conversions/migrations. She is a member of Synergent’s management team and is focused on boosting credit union productivity by identifying efficiencies and supporting vendor integrations that help increase credit union growth and success.