solving the credit union 'tower of babel' (conference session slides)

Solving the Credit Union 'Tower of Babel'

Common Lending Data Language

Presented by:

David Hilger Chris Cazer

Allied Solutions Inc. Osprey Software Solutions Inc.

Solving the Credit Union 'Tower of Babel‘ a

Common Lending Data Language

Topics 1. Ugly 2. Nirvana 3. The Road 4. [Your] Vision

Why The Tower of Babel is a problem

The “mechanics” of delivering solutions complicates or prevents their implementation.

• Lack of true data standards complicates all aspects of services dependent upon data

Allied Solutions

Leading provider of products and services to financial institutions

• Over 3,700 Clients

• Over 70 products/solutions

• Over 30 provider partnerships

We integrate many systems to provide solutions

The Ugly Reality

The lack of a common standards for lending data causes:

• Increased expense to the institution

• Increased security risks and mitigation efforts

• Prevents the implementation of the best solutions

The Ugly Reality - Voices

• “Getting access to my data is like dealing with a crack dealer” – Ed Speed TDECU

• “Securely managing data to my service providers is one of the biggest risks we are faced with” – Greg Schmeisser FCFCU

• “Integrating with the core can cost more than our entire solution – depriving me of business and my client of the services they want” – Rob Daley Intelligent Banking Systems

The Ugly Reality – A Tower of Babel

• Each integration is separate and custom

• Multiple integrations to each source

• Multiple integrations for each solution

The Ugly Reality – A Tower of Babel

• Increased complexity

• Increased management

• Increased costs

• Increased time to deploy

• DECREASED solutions

Core System

LOS

Government Systems

Doc Mgmt Systems

Home Equity Loan Systems

Collateral Evaluation

Systems

Title Search Systems

POS Ordering Systems

Indirect Lenders Systems

Credit Card Loan Systems

Credit Rating Agencies

Insurance Tracking Systems

Collections Systems

The Ugly Reality – A Tangled Web

The Ugly Reality - Impact

Potential for Allied

3,700 (clients) * 30 (providers) * 70 (prod/serv) = 9,583,000 integrations

Reality for Allied

More than 10,000 distinct integration points/month

….And Growing

The Ugly Reality - Pain

• Expensive for the Industry

– Costs of services

– Time to market

– Client satisfaction

• High Risk Level

– Data exposure risk

– Unintended process risks

Nirvana

Seamless transfer of member data

• Standardized Data Format

• Standard Transmission Protocol

• Standard/Certified Security

The Road to Nirvana (Deconstructing the Tower of Babel)

Transition slide to Chris

• Specialize in mission critical software development

• World class clients

• 100% track record of success

• All clients are highly reference-able

Sample of active clients

Osprey Software Solutions Inc.

Nirvana

• “Rapidly add new processes & features”

• “New systems automatically integrate”

• “Reduced member costs”

• “Nothing breaks / stability”

• “Not locked into any vendor”

• “My data is secure. I can sleep at night”

Nirvana: LoanConnectOnce

Insurance

Core System

Data

Interchange

Standard

for

Loan Data

Nirvana: LoanConnectOnce

Insurance

Core System

Payload

Communication

Open Standards

Loan ConnectOnce Components

• Community Driven

• Open standards

• Communication protocol

• Business Payload

– Business Process

– Transaction Set

– Schema & Data Dictionary

The Road: Open Community

• Freely

accessible

• Full

Transparency

• Always

evolving

• Virtual

• Governed by

Process +

Consensus

• Members

Initiate

Submissions

• Virtual Team

Driven Members

The movers and shakers of the industry

Application Vendors

CU Lenders & Counter Parties

Stop! Cores will not Participate!

• Revenue

• IP (Family Jewels)

• Control

Core Vendors will participate!

• Bad Revenue

– Margin; revenue recognition; client satisfaction

• No “Jewels”

– Old fashion; “Not Open”; Not a feature

• Lost Control

– Inevitable; Sub-industry; Process risk

Example Process

The Road

1. Bootstrap: Community & Process

2. Get going: First submission

Bootstrap: Community • TBD Image for

www.loanConnectOnce.Orh

• TBD Image for

• Linkedin/loanConnectOnce open organization

First Submission

Communication Protocol Example considerations

• Delivery mechanism(s)

• Encryption

• Compression

• Data Integrity

• Guaranteed Delivery

• Fault Tolerance

• Non-Repudiation

Engage : Your Vision

• Add you vision & experience for the future!

• Join the community @:

www.LoanConnectOnce.Org

Questions

• Questions?

• Why a standard just for Lending Data?

• What about other consortiums?

• Why are you doing this?

• What will this cost?

• “come-on”, how is this going to happen?

Contact Us

www.nafcu.org/allied