AI Center of Excellence (COE) Framework

Heritage Community Credit Union

Prepared by: Seiche Advisors
Engagement: Journey · August 2026
Lead consultant: Maria Santos
Classification: Proprietary & Confidential

Framework version: 1.0 (HCCU)
COE sponsor: Patricia Chen, President & CEO
COE lead: Robert Ellis, CRO — 0.25 FTE (AI Governance Lead, effective August 8, 2026)

Executive summary

Heritage Community Credit Union does not need a standalone AI department. It needs a governed operating model that coordinates the AI already embedded in Symitar, Alkami, and Abrigo — and the two approved pilots (BSA/AML triage, Copilot productivity) — under one intake path, one inventory, and one board reporting rhythm.

Selected model: Model B (standard COE) — appropriate for $1.8B assets, 285 FTE, and NCUA federal charter.

90-day launch target: November 15, 2026 (aligned to Journey close + board policy ratification).

1. COE design decisions (HCCU-specific)

Decision	Choice	Rationale
Chair	Robert Ellis, CRO	Examiner-facing risk posture; BSA is binding constraint
COE lead	Robert Ellis (0.25 FTE)	CRO staff capacity; avoids CIO bandwidth conflict during Symitar projects
CIO role	James Wu — technology vote, not chair	Clear separation: risk chairs, IT implements
Committee size	7 voting + audit observer	Right-sized for HCCU leadership bench
Cadence	Monthly through Q1 2027, then quarterly	Active pilot phase
Champions	6 (lending, retail, ops, compliance, HR, marketing)	Covers 85% of employee population

2. Governance committee roster

Role	Member	Notes
Chair	Robert Ellis, CRO	Board reporting owner
Executive sponsor	Patricia Chen, CEO	Quarterly check-in with COE lead
Technology	James Wu, CIO	Vendor stack, security, Symitar integration
Legal / compliance	Linda Park, CLO	Policy, contracts, examiner letters
BSA/AML	Diane Foster, BSA Officer	Pilot #1 sponsor
Business unit	Maria Gutierrez, SVP Retail & Member Service	Member-facing AI guardrails
Board liaison	Director James Okonkwo	September board AI slot
Internal audit (observer)	TBD — contract auditor	Q4 mock exam

Charter: adopt Seiche AI Policy Template Appendix B with HCCU names inserted. Board ratification: September 2026.

3. RACI highlights (HCCU)

Activity	Ellis (COE)	Chen (CEO)	Wu (CIO)	Park (CLO)	Foster (BSA)
Verafin POC (Pilot #1)	R	I	C	C	A
Copilot pilot (Pilot #2)	R	I	A	C	I
AI inventory	A/R	I	R	C	C
Board quarterly report	R	C	C	C	C
Examiner AI inquiry	R	C	C	A	C

4. Intake & prioritization (HCCU weights)

Criterion	Weight	HCCU note
Regulatory / exam risk reduction	30%	BSA backlog is examiner-visible
ROI / payback < 18 months	25%	CFO threshold
Implementation feasibility	20%	Symitar API constraints
Strategic plan alignment	15%	Efficiency + member experience
Data readiness	10%	M365 ready; Symitar Restricted gated

Intake channel: [email protected] (internal) → COE lead triage within 5 business days. Portal form when HCCU workspace live.

Queued use cases (post-pilot):

Use case	Tier	Score	Status
Commercial loan package IDP	2	3.8	Defer to Q2 2027
Marketing propensity (Alkami)	2	3.2	Hold — policy first
Call center summarization	2	3.6	Champion request — Q1 2027 review

5. Standards library (HCCU)

Document	Location	Status
AI Acceptable Use Policy	CLO review → Sep board	Draft
AI inventory	Seiche portal + shared drive	v1 due Aug 15
Pilot #1 charter	`06-pilot-spec-bsa-aml.html`	Approved pending board
Pilot #2 charter	`07-pilot-spec-genai-productivity.html`	Approved pending policy
Vendor AI diligence checklist	TPRM addendum	Aug 30
Board report template	This doc, Appendix B	First report Sep 2026

6. Operating cadence (HCCU)

Rhythm	Next instance	Output
Ellis ↔ Wu weekly sync	Mondays 8:00 AM	Intake queue
Committee monthly	Third Thursday	Minutes → portal
Champion office hours	Second Tuesday	Teams call, 30 min
Board quarterly report	September, December, March, June	Standing agenda item
Inventory refresh	End of each quarter	CRO → NCUA exam file

7. COE KPIs (Year 1 targets)

Metric	Baseline (Aug 2026)	Dec 2026 target	Sep 2027 target
Systems inventoried	5 known, 0 documented	5 documented	8+ documented
Staff policy training	0%	80%	95%
Shadow AI reports	Unknown (27% survey admit use)	−50%	−75%
Pilots with scale/stop review	0	2	2+ evaluated
Committee meetings	0	4	4/year steady

8. Budget (HCCU standing COE)

Line item	Year 1
COE lead (0.25 FTE, Ellis staff)	$22K
Training (all-staff module + champions)	$12K
Seiche advisory (quarterly check-in)	$15K
Legal/policy review	$8K
Standing COE total	$57K

Pilot and production license costs remain in Strategy Package §11 ($225K program midpoint).

9. 90-day launch plan (HCCU)

Week	Date (approx)	Milestone	Owner
1	Aug 8	AI Governance Lead appointed	Chen
2	Aug 15	Inventory v1 complete	Wu + Ellis
3	Aug 21	Board approves Journey + COE charter	Chen
4–6	Sep	Policy effective; tools list published	Park + Wu
7	Sep 15	Champion network named	Ellis
8	Sep 22	Committee meeting #1; pilots green-lit	Ellis
9–12	Oct–Nov	Pilots live; intake form published	Ellis
13	Nov 15	COE launch complete	Ellis

10. Board actions requested

Ratify AI Governance Committee charter (September 2026)
Approve 0.25 FTE AI Governance Lead assignment (Robert Ellis staff)
Approve $57K standing COE budget line in 2026–2027 G&A
Add quarterly AI governance report to standing board agenda

Document	File
Strategy Package	`05-strategy-package.html`
AI policy draft	Seiche template → CLO workspace
Pilot #1	`06-pilot-spec-bsa-aml.html`
Pilot #2	`07-pilot-spec-genai-productivity.html`
Journey readout	`09-journey-readout.html`