The $80 million, York, Penn.-based Heritage Valley Federal Credit Union learned to survive against bigger financial institutions by supplying innovative services to members, and educating and lending to those underserved by other options.
“Our tag line is ‘effortless banking.’ Every day we focus on how we can make our members experience utilizing our products and services effortless,” Jeremey Sterner, Heritage Valley’s vice president of information technology, said.
Technology gives Heritage Valley an advantage, Sterner explained. “It does level the playing field. He added the credit union tries to stay competitive by delivering similar products and services, including online and mobile, that the bigger banks and credit unions in the York area provide.
Heritage Valley, Sterner asserted, was one of the first credit unions in the area to offer remote deposit capture through mobile. In addition, the credit union offers mobile apps for Apple and Android devices, a mobile-friendly version of online banking, and the capability to send and receive account information via SMS text messaging.
“We always say we’re small but were mighty. Technology is what keeps us competitive,” Sterner said.
One competitive advantage for Heritage Valley is it is one of a few credit unions of its size with its own IT department, which includes Sterner as vice president and two other associates. “The advantage of having someone in-house in charge of IT is it allows the credit union to control the costs of our technology spending,” Sterner noted.
Having its own information technology staff also keeps the credit union at the forefront of the different products and services available from a technology, security and compliance standpoint. Plus, having someone responsible for IT allows the organization to listen to internal business related issues, determine how to resolve some of those issues, streamline initiatives using technology and survive in a really competitive market.
Heritage Valley also stays true to the credit union foundation by serving members usually ignored by other financial institutions. “We truly live the credit union mission of people helping people,” Sterner said. “The credit union does this by offering financial education to those that may not get it otherwise and through its lending practices, which offers access to loans that other financial institutions will simply not approve.”
For example, Heritage Valley’s indirect auto program fills the void for buyers sometimes overlooked by prime-lending sources. “This would normally leave borrowers with only higher priced options such as finance companies and other sub-prime alternatives with fees. We fill this void and provide local auto buyers a more affordable option with no fees,” Sterner said.
The credit union uses the same approach with other products as well, such as offering credit cards to those with less than perfect credit and even no-fee secured cards to those with no credit score at all.
“If we had to say we had a niche that would probably be our niche. At the end of the lending process there is a human being involved. We try to look at the human side of it,” Sterner explained.
The Monett, Mo.-based Jack Henry & Associates’ Symitar core, which includes more than 700 credit union customers, helps Heritage Valley remain current with technology and member demands.
Heritage Valley converted to Symitar’s Episys core platform some time ago in 2004. “There were several different factors that led to our decision to move to the Symitar core,” Sterner mentioned. One was the acquisition of their previous core vendor. At that time, the credit union anticipated a forthcoming conversion due to a consolidation of platforms and products from the vendor side.
In addition, Heritage Valley felt their core at that juncture lacked the features it needed such as a user-friendly interface and flexibility to integrate its own custom developed solutions.
They also considered an in-house or hosted solution. “At the time, in-house was our only real option,” Sterner said. “We have evaluated moving to a hosted service since our conversion in 2004. We think there is value in a hosted core solution but for us the cost of a hosted solution compared to in-house just has not added up.”
“The scalability of Episys ensures that all credit unions using the platform, from our largest client to the smallest, gain the full spectrum of benefits it has to offer,” Ted Bilke, president of Symitar, said. He added, among these benefits is select customization. “Credit unions like Heritage Valley can tailor aspects of the platform to their specific needs, which often translates into increased efficiencies and a more positive member experience.”
Bilke noted by running Episys, Heritage Valley can take advantage of Symitar’s PowerOn, a sophisticated development tool that allows the credit union to create customized programs and applications within the core that address its unique business and member needs. In addition, Bilke said, “PowerOn provides open, common programming protocols that give Heritage Valley, and all Episys credit unions, the flexibility to build and configure workflows so the core works best for them. All changes are made within the structure and protection of Episys, but independent of the core code.”
Bilke pointed out Symitar also helps credit unions, like Heritage Valley, thrive in several ways, from its role as an advisor beyond conversion, as well as its ongoing technology investments. “From the onset, Symitar acts as a true partner to our credit union clients; we take the time to listen to their needs, understand their goals and work with them to identify the resources that will ultimately help them succeed.”
High levels of integration also help credit unions such as Heritage Valley succeed, Bilke said. “Episys seamlessly works with a wide variety of vendors and third parties without headache or hassle, allowing credit unions to easily and conveniently work with whichever third parties are best suited for them.”
Additionally, PowerOn users have access to the PowerOn Marketplace, a collaborative environment for Episys credit unions to securely exchange their ideas, programs and applications they’ve created. “As a member of the Marketplace, Heritage Valley has access to dynamic resources and a wealth of knowledge that presents a real competitive advantage.”
Sterner added, “One of the greatest strengths of the Symitar core has always been the ability to customize the system to fit our credit union. I cannot recall a time where we could not provide a product or service to our members because of a limitation of the Symitar core.”
Sterner emphasized, “Partnering with vendors like Symitar enabled us to deliver on our goal of making banking at Heritage Valley effortless.” It really comes down to one-on-one service either through technology or through coming into the branch, he added. “Look at each individual member and identify the solutions they need to be successful in their financial lives. For us it is all about the service, that’s how we separate ourselves.”
