HUNTSVILLE, Ala. -- For Redstone FCU, part of the new competitive strategy is to actually sell its own technology expertise, through Open Solutions Inc.’s DNA online apps store.
The $3.5 billion credit union, which has developed two dozen DNAapps, has formed Redstone Consulting Group LLC, which markets the credit union's DNAapps to other banks and credit unions. Among the DNAapps the credit union has developed so far are tools that streamlined overdraft query and compliance with loan modification regulations.
Harry Gunsallus, senior vice president of technology for Redstone, said the credit union's vigorous development of DNAapps was a matter of necessity. "What a lot of folks don't know about Huntsville is that is has a large research park, so it has a very tech-savvy population. Redstone has 90% penetration of that market. That penetration is being disintermediated- not by Bank of America, but by Google and its Google Wallet. When we think about Google and market penetration, we jumped on the DNAappstore pretty quickly," he said.
Gunsallus didn't disclose how much money Redstone Consulting Group was earning but said the business was successfully generating non-interest income. "We turned the IT department from an expense line into a revenue source," he said.