solving the credit union 'tower of babel' (conference session slides)
DESCRIPTION
By creating true standards surrounding a lending format, communication, and security of credit union and partner data can be significantly improved, allowing for a similar improvement in services offered. This thought-provoking presentation will educate you on the importance of developing standard protocols for lending data, how it benefits all stakeholders, and also how to go about creating these standards. Learn more at: www.nafcu.org/alliedTRANSCRIPT
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?
