A blog reader sent in this great tip regarding core processors. The following is what he sent me, verbatim.
I recently had a conversation with the CEO of another Federal Credit Union.
This CEO was frustrated that the credit union's core processor would not supply
a list of its credit union customers in the area (let alone a complete list).
Perhaps there are other credit unions in a similar situation.
For many credit unions, the core data processor may be the most significant
credit union vendor, both in terms of expenses and risk to the credit union. The
NCUA 5300 data, collected every quarter, lists the core processing vendor for
each credit union, as reported by the credit union. Some core processors readily
supply a complete list of credit union customers, while others may refuse to do
so. Getting referral information from both current and former customers is a
commonly recommended step in vendor due diligence and third party relationships.
How can this be done properly without a full customer list, not just a few
Download and unzip the most recent file. The text files within the ZIP file
contain the 5300 data. Contact information for credit unions is located in file
FOICU.TXT and the vendor information is in FS220D.TXT. It is not difficult to
load this information into a spreadsheet and sort by vendor, by state, by zip
code, etc. You then have a complete credit union customer list (as reported by
credit unions) for each core processing vendor.
If you want to find former customers of that vendor (who have left in the
last several years), older versions of this data are available as well.
During this year's NAFCU Compliance Seminar in Dallas, NAFCU staff will deliver two "shotgun" style sessions. When you put together a compliance conference, it is nearly impossible to devote a compliance session to every important topic. Some things fall through the cracks. Well, we decided last year to create special sessions where we could deliver any important information that was not covered in a formal session. NCUA legal opinion letters, Letters to Credit Unions, Risk Alerts, Material Loss Reviews, and other hot topics will be covered. We'll deliver 2 of these sessions with this goal: you won't leave the conference without have been exposed to nearly all the major compliance changes from the previous year.
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