ATLANTA-Expect continued consolidation of loan origination systems this year.

"Credit unions are still moving toward an all-in-one type system, and that will continue to grow as legacy systems that were used in the past (are phased out)," said Kyle Kehoe, VP of sales for CRIF Lending Solutions.

Kehoe observed that loan origination systems have longer lifecycles than consumer electronics, but 2013 will see a continuation of CU systems moving from the C# applications built in the late 1990s and early 2000s to .net cloud-based computing. "Dot net and applications that run on that have gotten much more robust and stable, and credit unions are much more comfortable now with an ASP environment and hosted environment than they were five to six years ago."

Kehoe noted that technology providers that built their systems on Windows and C# applications "are continuing to rewrite into a .Net framework and cloud-based computing. That's a trend that will continue. We'll still see more credit unions evaluating their technology over the next couple of years and that will drive more RFPs."

The VP added that vendor compliance requirements continue to be a major factor, so "credit unions will want to partner with a vendor who has an SSAE 16 certification, and who has disaster recovery processes put into place as more cloud-based computing and ASP continues to grow."

What's most important, he said, is ensuring the system is sufficiently nimble to adjust to market changes, incuding a slowdown in lending, and to adjust to new regs while also managing costs and analytics.

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