Enterprise Solution Modernization (ESM) Program

The financial services landscape is ever changing, which means the NCUA must adapt to keep pace and provide for a safe and ESM - Enterprise Solution Modernization Program Logo sound credit union system. The Enterprise Solution Modernization (ESM) program is a multi-year effort to introduce emerging and secure technology solutions that support the NCUA’s examination, data collection and reporting efforts to improve key, integrated business processes. The result will be a flexible technology architecture that integrates modernized systems and tools across the agency.​​

Why Is the ESM Program Important?

  • Modernizing our technology will facilitate greater collaboration and exchange of information between credit unions, credit union service organizations, state supervisory authorities, and NCUA. 
  • Robust business intelligence tools and analytics will allow the NCUA to manage risks to the credit union system more proactively.
  • A flexible technology architecture will be more adaptable to changes in the financial services environment, including changes in statutes and regulations, than the agency’s current systems. 
  • New systems will streamline processes and procedures, helping create a more effective, less burdensome examination process.
  • New systems will enable a single access point for users to interact with the NCUA.

The history of the ESM program can be found here.

Stakeholder EngagementWord collage (wordle) for ESM

As part of ESM, data standardization will allow the agency to improve loan and deposit portfolio analytics during examinations. The NCUA recently sought public comment on the issues to be addressed by the electronic data modernization effort. These responses will inform us about:

  • The extent to which federally insured credit unions can provide data electronically in a standard format, including any limitations or alternatives to consider. 
  • Challenges and costs associated with providing a standardized data format. 
  • Implementation strategies that reduce burden on credit unions without compromising the NCUA’s ability to safeguard the Share Insurance Fund. 
  • Expectations on specific information security controls or assurances to safeguard electronic member, loan, deposit and investment data.   

To review the request for information, visit the Federal Register's website. The comment period ended on January 2, 2018, but stakeholders can email additional suggestions or questions to BIMail@ncua.gov. Responses to the request for information are posted on our website.

NCUA also summarized all responses into a report.

After evaluating the written responses, the NCUA conducted a series of stakeholder outreach calls. This report focuses on the feedback received from conference calls with federally-insured credit unions (FICUs), core data processing vendors, and offline vendors. Generally, FICUs and vendors shared concerns regarding data security, the need for more clarity regarding the proposed data field list included in the RFI, and implementation challenges both the NCUA and the industry may face with an expanded and standardized data collection. They appreciated the agency's approach to outreach and enjoyed having the ability to provide feedback. Commenters recommended the agency continue this approach and provide further outreach, should this proposal move forward.

Frequently Asked Questions

Frequently Asked Questions about ESM

Contact

Email: BIMAIL@NCUA.gov

Mailing Address:

National Credit Union Administration
Attn: Business Innovation Director
1775 Duke Street
Alexandria, VA 22314-3428

Last modified on
02/04/19