By creating true standards surrounding a lending format, communication, and security of credit union and partner data can be significantly improved, allowing for a similar improvement in services offered. This thought-provoking presentation will educate you on the importance of developing standard protocols for lending data, how it benefits all stakeholders, and also how to go about creating these standards. Learn more at: www.nafcu.org/allied

1. Solving the Credit Union
'Tower of Babel'
Common Lending Data Language
Presented by:
David Hilger Chris Cazer
Allied Solutions Inc. Osprey Software Solutions Inc.

2. Solving the Credit Union 'Tower of Babel‘
a
Common Lending Data Language
Topics
1. Ugly
2. Nirvana
3. The Road
4. [Your] Vision

3. Why The Tower of Babel is a problem
The “mechanics” of delivering solutions
complicates or prevents their implementation.
• Lack of true data standards complicates all
aspects of services dependent upon data

4. Allied Solutions
Leading provider of products and services to
financial institutions
• Over 3,700 Clients
• Over 70 products/solutions
• Over 30 provider partnerships
We integrate many systems to provide solutions

5. The Ugly Reality
The lack of a common standards for lending data
causes:
• Increased expense to the institution
• Increased security risks and mitigation efforts
• Prevents the implementation of the best
solutions

6. The Ugly Reality - Voices
• “Getting access to my data is like dealing with
a crack dealer” – Ed Speed TDECU
• “Securely managing data to my service
providers is one of the biggest risks we are
faced with” – Greg Schmeisser FCFCU
• “Integrating with the core can cost more than
our entire solution – depriving me of business
and my client of the services they want” – Rob
Daley Intelligent Banking Systems

7. The Ugly Reality – A Tower of Babel
• Each integration is separate and custom
• Multiple integrations to each source
• Multiple integrations for each solution

8. The Ugly Reality – A Tower of Babel
• Increased complexity
• Increased management
• Increased costs
• Increased time to deploy
• DECREASED solutions

9. The Ugly Reality – A Tangled Web
Insurance Tracking Collections POS Ordering
Systems Systems Systems
Government Doc Mgmt
Systems Systems
Home Equity Indirect Lenders
Loan Systems Systems
Core
System
Collateral
Evaluation Credit Rating
Systems Agencies
Credit Card Loan Title Search
Systems Systems
LOS

10. The Ugly Reality - Impact
Potential for Allied
3,700 (clients) * 30 (providers) * 70 (prod/serv) =
9,583,000 integrations
Reality for Allied
More than 10,000 distinct integration points/month
….And Growing

11. The Ugly Reality - Pain
• Expensive for the Industry
– Costs of services
– Time to market
– Client satisfaction
• High Risk Level
– Data exposure risk
– Unintended process risks

12. Nirvana
Seamless transfer of member data
• Standardized Data Format
• Standard Transmission Protocol
• Standard/Certified Security

13. The Road to Nirvana
(Deconstructing the Tower of Babel)
Transition slide to Chris

14. Osprey Software Solutions Inc.
• Specialize in mission critical software development
• World class clients
• 100% track record of success
• All clients are highly reference-able
Sample of active clients

15. Nirvana
• “Rapidly add new processes & features”
• “New systems automatically integrate”
• “Reduced member costs”
• “Nothing breaks / stability”
• “Not locked into any vendor”
• “My data is secure. I can sleep at night”

16. Nirvana: LoanConnectOnce
Core
System
Data
Interchange
Standard
for
Loan Data
Insuranc
e

17. Nirvana: LoanConnectOnce
Core
System
Open Standards
Communication
Payload
Insurance

18. Loan ConnectOnce
Components
• Community Driven
• Open standards
• Communication protocol
• Business Payload
– Business Process
– Transaction Set
– Schema & Data Dictionary

19. The Road: Open Community
• Freely • Governed by
accessible Process +
Application
• Full Vendors
Consensus
Transparency CU Lenders & • Members
Counter Parties Initiate
• Always
evolving Submissions
• Virtual • Virtual Team
Driven
Members
The movers and shakers of the industry

20. Stop! Cores will not Participate!
• Revenue
• IP (Family Jewels)
• Control

21. Core Vendors will participate!
• Bad Revenue
– Margin; revenue recognition; client satisfaction
• No “Jewels”
– Old fashion; “Not Open”; Not a feature
• Lost Control
– Inevitable; Sub-industry; Process risk

22. Example Process

23. The Road
1. Bootstrap: Community & Process
2. Get going: First submission

24. Bootstrap: Community
• TBD Image for • TBD Image for
www.loanConnectOnce.Orh • Linkedin/loanConnectOnce
open organization

25. First Submission
Communication Protocol
Example considerations
• Delivery mechanism(s)
• Encryption
• Compression
• Data Integrity
• Guaranteed Delivery
• Fault Tolerance
• Non-Repudiation

26. Engage : Your Vision
• Add you vision & experience for the future!
• Join the community @:
www.LoanConnectOnce.Org

27. Questions
• Questions?
• Why a standard just for Lending Data?
• What about other consortiums?
• Why are you doing this?
• What will this cost?
• “come-on”, how is this going to happen?

28. Contact Us
www.nafcu.org/allied