Over the years, as technology has changed banking, many financial institutions have found themselves at a crossroads of either keeping core processing in-house or outsourcing it. Casey State Bank, Illinois, faced that crucial decision just over a year ago and has since found that it’s decision to outsource makes the bank more efficient and compliant.
In-House… and Everywhere
As a growing bank, Casey State started experiencing technology headaches and vendor overload when it came to maintain in-house processing. It was facing both growing demands on employees’ time and increasing compliance issues with such IT components as firewalls and hardware. Besides, the bank had numerous vendors for various IT needs, and the responsibilities of managing all the complexities were becoming frustrating.
“When you use in-house processing, the core is really just one piece of the puzzle,” says Brad Wolfe, Casey State president and chief executive officer. “Our core was with one provider, and all our other services were with someone else. When we had issues, everyone pointed the finger at the other.”
With the bank’s IT staff, which consisted of one person who also served as a cashier, becoming overwhelmed with complexities, Casey State realized the need to explore other options. According to Wolfe, “the bank had become too big, and we needed to hire someone full-time or move to a new processing model.”
Outsourced… and Efficient
After researching outsourced core platforms, Casey State chose CSI NuPoint, which offers cloud-based core processing. To help with the migration, CSI stationed a conversion specialist at each branch to ensure a smooth, seamless process. Wolfe says that component was essential in getting the bank’s outsourced core off the ground. And the benefits have only grown from there.
“We don’t miss anything about in-house processing,” Wolfe comments. “We’re always using the latest technology since enhancements and updates are installed automatically, rather than having to do all that ourselves.”
Wolfe also appreciates the opportunity to establish relationships with other NuPoint users, so he can understand additional ways to enhance system usage. What’s more, he says that Casey State feels less pressure from examiners now that the bank is using NuPoint and CSI.
“The examiners know CSI’s reputation for doing things the right way. If you’re using CSI, then the examiners understand that you’re doing it right, too.”
Better… and Growing
Wolfe says that many banks perceive “more control” as the primary reason for keeping core processing in-house, but he doesn’t subscribe to that line of thinking. Since outsourcing its core, the bank hasn’t looked back or felt any regret for the decision.
“We took a huge leap forward when we migrated away from in-house processing,” Wolfe says. “In fact, I no longer understand why a bank would want to operate that way.”
“We don’t miss anything about in-house processing.”
Brad Wolfe
President & Chief Executive Officer, Casey State Bank
Outsourcing, according to Wolfe, has made the bank better. NuPoint has allowed Casey State to automate such manual processes as accounts payable. He says the bank’s numbers, including its income numbers and balance numbers, are better as well. Much of this can be attributed to streamlining many of its ancillary products through NuPoint and eliminating vendor sprawl. In fact, the bank has eliminated at least 10 vendors due to efficiencies gained through hosted core technology.
“We are trying to partner with one vendor for core processing and those ancillary solutions integrated through the core,” Wolfe says. “And we want CSI to be that partner.”