Technology is the second-biggest budget item for credit unions just after employee salaries, according to the CUNA Strategic Services Technology Survey.
Specifically, the C-level survey respondents noted:
- 20% of credit unions do not have enough skilled staff to support the organization’s technology functions and needs;
- 25% of credit unions do not provide sufficient technology training for their staff;
- About 10% have only basic systems in place to meet immediate credit union needs;
- Three-quarters of credit unions indicate they make effective use of technology to support members; and
- Over 25% recognize that technology is an investment in their mission, and executive leadership integrates technology decisions with organizational strategy.
Outsourcing information technology (IT) continues to be a trend with today’s credit unions. A high level of survey respondents (85% or more) indicated they outsource some or all of their IT to a vendor partner.
Almost 6% noted they were 100% outsourced, with all IT functions being outsourced to a vendor partner. Additionally, about 12% indicated heavy IT outsourcing, 28% moderate, and over 40% noted occasional outsourcing.
IT personnel staffing levels continues to be a challenge. More than one-third of the survey respondents have more than six IT staff, over 21% have four to five, and over 25% have two to three.
The survey, conducted by CUNA Strategic Services in January 2014, found that over 30% of the respondents, on average, spend over $500 per full-time credit union employee on technology.