Managing member data during a merger

Did you know that improper data management during a merger can result in up to $275,000 in avoidable costs for your credit union? Even worse, it can cause unnecessary delays in responding to member requests, resulting in a hit to your reputation.

During a merger, most credit unions opt for one of three approaches to data management, all common but flawed. Either the organization leaves the data sitting in the acquired system, dumps the data to CDs or enlists its core provider to handle data conversion. What institutions may not realize is that effective alternatives to these data management strategies exist.

What Are the True Costs of Common Approaches to Data Management?

Perhaps the most obvious cost to credit unions relying on common data management approaches during a merger is the monetary cost. By hiring a core provider to handle conversion, credit unions will shoulder not only the cost of the conversion project (ranging anywhere from $20,000-$250,000), but also will encounter other hidden costs caused by operational disruption (averaging $5,000-$75,000). However, if the credit union simply leaves the data sitting in the acquired institution’s imaging or enterprise content management system, they’ll likely incur costs ranging from $50,000-$275,000 annually, associated with storage, licensing, maintenance, updates and other fees.

 

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