Pennsylvania credit union taps Lumin Digital for cloud banking platform

Lumin Digital will host the credit union’s mobile and digital banking services in its cloud platform

by | May 12, 2022 | bobsguide

US fintech Lumin Digital has signed a multi-year agreement with Pennsylvania-based APCI Federal Credit Union (APCI FCU) to provide the latter with a cloud-native platform for mobile and digital banking services.

Lumin Digital will provide the technology behind new APCI’s new eBanking app, replacing the credit union’s existing eMobile app. The new application will also incorporate the services currently available via APCI’s eCard, which will be discontinued alongside the eMobile app.

“This partnership with Lumin Digital will allow us to provide our members with a new and superior digital banking solution that will deliver the power of a full-service branch, right in their hands,” said Gina Fili, president and CEO at APCI FCU.

According to the APCI eBanking guide, the app will offer a “single point of sign-on, enhanced account security, automatic account aggregation, the ability to access all functions and features and perform transactions across device channels.”

The new eBanking app will include multi-factor authentication security.

Due to Lumin Digital’s ability to allow third-party integrations, the APCI ebanking app will also benefit from digital identity authentication solution, ThreatMetrix, enabling user authentication and fraud detection across all device channels.

APCI FCU will go live on the platform on 17 May.

Lumin Digital is majority-owned by US credit union service organisation, PSCU, and offers a cloud-native digital banking platform to credit union members and financial institutions.

Transition to cloud accelerates

APCI FCU is among the series of financial institutions turning to a cloud-based platform for their digital services as they look to retain existing clients and bring in new customers.

According to Mckinsey’s 2021 global retail baking consumer survey, 40percent of retail clients are banking with fintech or a big technology company in the US. In Europe, that figure is 30percent.

To fend off these new challenges, credit unions have also begun looking into cloud-based platforms to offer improved and streamlined digital services.

In Canada, Calgary’s connectFirst Credit Union last month announced that it would be moving its business to a single digital platform provided by NASDAQ-listed cloud banking services provider nCino.

That same month, ORNL Federal Credit Union chose Alkami, a US cloud-based digital banking service provider, as the cloud platform to host the bank’s digital banking capabilities.

In Europe, Garanti bank and Rakuten Europe bank have selected banking software provider, Temenos, as their cloud platform to host their digital services.

ABN AMRO also extended its Temenos cloud partnership, giving the Dutch bank’s 22 DevOps teams access to Temenos’s continued deployment services for accelerated software delivery time.

Cloud migration moves slow

Another driver behind financial firms turning to white-label solutions such as Lumin, is the cost and complexity potentially involved in a lift-and-shift migration to the cloud.

Despite increasing demand for the flexibility that cloud-native services allow financial firms and their clients, the process of an in-house migration is far from streamlined, with some concerns about the timeframe.

According to a report published by NASDAQ-listed global technology research company Information Services Group (ISG), cloud migration projects in the US, Europe and Canada have an average length of more than 18 months, with large transformations taking five years.

Dave Goodman, director of cloud and software advisory at ISG highlighted that due to a small number of projects and slow execution, all possible mainframe-to-cloud migrations could take another decade to complete.

The report, however, emphasised the strong demand for cloud migration projects in the coming years as cloud providers invest in new tools.

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