Many credit unions view their MSP (Managed Service Provider) as a tool to reach for when things break. “My MSP manages our network, so I will reach out to them when our network is not working as intended.”
While that thinking is correct, it limits the potential for this relationship. Credit unions pay their MSP too much to treat them like another utility company. Viewing your MSP as a reactive entity, “Once we start encountering network issues, we reach out to them for help,” is a missed opportunity.
Instead, I encourage you to take a proactive approach and begin to see your MSP as a strategic partner.
Keep your MSP informed
Your MSP should know your goals. Be sure to tell them the credit union’s growth plans and member experience objectives. This alignment changes the relationship from transactional to strategic. Some important first steps:
- Inform the MSP of the takeaways from IT planning discussions (or include them in those discussions)
- Share your short-term and long-term business objectives
- Request proactive recommendations
If I were a credit union executive working on a budget, and I started with our IT infrastructure, I might think, “Dang, I pay a lot for hardware. Every two or three years, SOMETHING goes end-of-life or end-of-service, and I have to start looking at the next model and budgeting for that. Maybe we should start thinking about cloud solutions.”
This is an opportunity to reach out to your managed service provider and ask, “Can I get some time with your sales team, or one of your engineers?” “We’re having a hard time managing the hardware life cycle, and we’d like to consider cloud solutions. What are your thoughts? What are the first steps to start heading that direction?”
You may need to pay for that time, but that money is well spent if that meeting provides them with an understanding of your challenges and where you would like to be in the future.
Know your responsibilities
Outsourcing IT does not mean outsourcing accountability. Credit union leadership must maintain visibility into performance and risk. Best practices include conducting monthly or quarterly performance reviews, creating dashboards with key metrics (uptime, ticket resolution, etc.), and receiving regular reporting on their cybersecurity posture.
Cybersecurity is a board-level issue, especially in financial services. Your MSP plays a critical role, but responsibility ultimately stays with the credit union. Executives should require regular security assessments and penetration testing, review incident response plans, and confirm compliance with regulatory requirements.
Don’t assume that your MSP is “handling security.” You need to verify it.
Closely monitoring this relationship can also help you save money. Executives should understand pricing models, audit invoices regularly, and watch for “scope creep” or unnecessary add-ons. Benchmark your costs against similar institutions. The cheapest MSP is rarely the best choice. Focus on value, reliability, and risk mitigation.
Know their responsibilities
When evaluating your MSP’s performance, credit unions should focus on outcomes like system reliability and uptime trends. They should also expect a reduction in security incidents along with high support satisfaction scores. Tie MSP performance to measurable improvements for your business, not just technical metrics.
A strong MSP will anticipate your needs for digital banking enhancements, cybersecurity upgrades, and scalability requirements. Service Level Agreements should clearly outline uptime expectations, response times, security responsibilities, and compliance support (e.g., audits). The credit union should regularly review performance metrics and ensure remediation plans are enforced when standards are not met.
An MSP may close tickets quickly—but is your member experience improving? Are outages decreasing? Is risk being reduced?
Ensure regulatory and compliance alignment
Credit unions operate in a highly regulated space, and your MSP should support your compliance efforts. It is key that you understand their data handling and privacy standards, business continuity and disaster recovery capabilities, and vendor risk management approach. Be sure to include your credit union’s compliance officers in MSP oversight to ensure that your MSP is aligned with your compliance objectives.
Consider your own business continuity efforts when evaluating the MSP’s role in your organization. Even the best MSP relationships can change. Credit unions should confirm with their MSP that there is clear data ownership and portability, in case the relationship comes to an end. Credit Unions should also maintain updated documentation of systems/configurations and avoid over-dependence on proprietary tools or knowledge silos.
If you can’t transition away from your MSP smoothly, you have hidden risk.
Don’t wait to connect
Credit unions have a lot to gain by building strong, proactive relationships with their Managed Service Providers. MSPs can be powerful enablers and supportive partners for credit unions—but only when they are managed properly and made aware of the credit union’s goals.
The following questions are a good starting point when evaluating the role that your MSP plays:
- Am I receiving compliance support from my MSP?
- Do I understand what my MSP does to ensure that my network remains secure?
- Does my MSP understand the short- and long-term objectives of my credit union?
If you answered no to any of these questions, then it’s time to reach out and start building the relationship.
