2017 CUSO Directory: A Guide To CUSOs And Their Partners

2017 CUSO Directory: A Guide To CUSOs And Their Partners

2017 CUSO DIRECTORY: A GUIDE TO CUSOs AND THEIR PARTNERS

TABLE OF CONTENTS

The Need For And The Impact Of CUSOs Top 40 Multi-Owned CUSOs By Number Of Credit Union Owners Top 40 Multi-Owned CUSOs By Combined $ Investments/Loans From Credit Unions Top 40 Multi-Owned CUSOs By $ Investments From Credit Unions Top 40 Multi-Owned CUSOs By $ Loans From Credit Unions Top 40 Wholly-Owned CUSOs By Combined $ Investments/Loans From Credit Unions Top 40 Wholly-Owned CUSOs By $ Investments From Credit Unions Top 40 Wholly-Owned CUSOs By $ Loans From Credit Unions Top 40 Credit Unions By Number Of CUSO Participations Top 40 Credit Unions By Combined Dollars Invested In/Or Loans To CUSOs Multi-Owned CUSO Listing Appendix: Service Offerings

3-4 5 6 7 8 9

10 11 12 13 14-26 27

CALLAHAN & ASSOCIATES, INC.

1001 Connecticut Ave, NW Ste. 1001, Washington, DC, 20036 P. 202.223.3920 | 800.446.7453 staft@

NACUSO

3419 Via Lido, PMB #135 Newport Beach, CA, 92663 P. 949.645.5296 | 888.462.2870 shawna@

THE NEED FOR AND THE IMPACT OF CUSOS

By Guy A. Messick, NACUSO General Counsel & Jack Antonini, NACUSO President & CEO

2017 CUSO DIRECTORY: A GUIDE TO CUSOS AND THEIR PARTNERS 3

There are numerous examples of companies that did not adjust to the changes in their industries that are no longer with us. Kodak, Borders Books, and Blockbuster come to mind.

One disruptor has been so effective that its name is now used as a verb in describing the effect, getting "Uber-ed" referring to losing your market to a disruptor with little capital investment.

In hindsight, the disruption to these business models was obvious, yet companies did not act in time. It's human nature to be in denial when dramatic change is required, but change is often required to survive. Netflix changed from a DVD delivery model to an online streaming model and it's flourished.

Credit unions are at such an inflection point today. In the 1930s credit unions were the disrupters. In those days, people had very limited choices to obtain financial services. You had to be within a short travel distance from a financial institution, and they had to be willing and able to do business with you. Credit unions used a collaborative model to revolutionize providing reasonably priced services to common folks. They were service oriented.

Today there are hundreds of financial institutions and other specialized financial service providers that are just a click away. Many competitors are convenient and provide superior customer service at low costs. The internet-only competitors don't have the costs of brick and mortar and extensive regulations.

Using big data, the competitors often know more about the members than a credit union knows. More and more members demand the fintech

connections and delivery systems from their providers. They want a mortgage approval within 10 minutes and a car loan in a minute.

Welcome to the digital age where new disrupters offer convenience as simple as a touching the screen on your mobile phone, and if you can't compete with these well-financed businesses, your membership base will likely wither away over time.

Collaborate Or Lose To The Competition

If you don't have the internal resources to compete in today's world of instant gratification through the internet, and you want to survive as an independent credit union, there's only one effective choice: collaboration.

Fortunately, it's in the DNA of credit unions to collaborate. Through the CUSO structure credit unions have fostered effective collaborations that create new revenue sources from alternative financial products, dramatically reduced costs, increased the expertise available to credit unions and inspired innovative solutions to the problems facing credit unions.

The inability to create significant spreads in net interest margins in today's world is of great concern. CUSOs generate much-needed net income for credit unions, helping provide capital to support growth in service to members.

Many credit union leaders know this but are reluctant to change their business model, or are delaying change simply because they don't know what to do. That is a serious error and will likely lead to pressures to merge that may be hard to resist. The time to change is when a credit union is financially healthy and has options.

? 2017 CALLAHAN & ASSOCIATES, INC | |

4 2017 CUSO DIRECTORY: A GUIDE TO CUSOS AND THEIR PARTNERS

THE NEED FOR AND THE IMPACT OF CUSOS

In this directory, there are CUSOs providing financial services (investments and insurance) that generate more than $1 million per year in revenue. Note that this is without any credit risk (as required for interest income) and provides members with valuable services that enhance the total member relationship.

There are also CUSOs that provide high levels of expertise in business, mortgage, and student lending that have enabled the credit union industry to make millions upon millions of dollars of performing loans with reasonable underwriting and servicing costs.

There also are CUSOs that provide a wide variety of operational services (e.g., IT support, IT core services, collections, compliance, internal auditing, call centers, etc.). When the CUSOs are well run, the credit unions enjoy the services at a lower cost with higher expertise than they could obtain on their own.

Joining a CUSO is not the total solution. The credit union must make changes to leverage the revised business model. For many types of operational services, credit unions must agree on common forms, procedures, and policies to realize the benefits of scale.

your challenges and strengths. Talk to credit unions that are collaborating.

Talk to the people who know this world, such as the folks at Callahan and NACUSO. Come to the NACUSO Annual Network Conference and meet with those who have successfully collaborated and have the scars to tell you how to avoid them.

We have two final thoughts to help guide you. The first is that collaboration is hard work, and needs constant adjustments to fulfill the goals of the credit union owners, but it is worth the effort when done well. Second, work with people you trust and align with temperamentally and philosophically.

The credit union CEOs who are successfully collaborating have connected on a personal level. Then they did a good job aligning the staff and board to the revised business model.

Credit unions jointly face significant challenges. Those who change in time will survive. There are several good collaborative CUSOs that help provide timely solutions.

The choice is yours. Will your credit union be Netflix or Blockbuster?

Credit unions must also adjust internal staff to match their talents to the requirements of the collaboration. You must do more with less people if you expect to reap significant savings.

Guy A Messick is NACUSO General Counsel and Jack Antonini is NACUSO President and CEO.

How To Begin

How do you begin to explore the benefits of collaboration? First, decide what's open to collaboration. At the very least, it's every service that does not interact with the members. But also consider the member-facing services, too. Some of them can be good candidates for collaboration. Then network. Find out who's doing what. Make a list of your collaborative priorities, and

? 2017 CALLAHAN & ASSOCIATES, INC | |

2017 CUSO DIRECTORY: A GUIDE TO CUSOS AND THEIR PARTNERS 5

TOP 40 MULTI-OWNED CUSOs BY NUMBER OF CREDIT UNION OWNERS

Rk. CUSO 1 CO-OP Financial Services 2 PSCU 3 Credit Union 24, Incorporated 4 CU*Answers, Inc.

St.

Services Offered

CA ALM Svcs., Elec. Trans. Svcs., Other IT Svcs., Prof. & Mgmt. Svcs., Sh. CU Br. (Svc. Ctr.) Ops.

FL CC Lns., Disast. Rec. Svcs., Elec. Trans. Svcs., Loan Sup. Svcs., Other Mem. Svc.

FL Elec. Trans. Svcs., Other, Other Mem. Svc., Sh. CU Br. (Svc. Ctr.) Ops.

MI Data Proc., Disast. Rec. Svcs., Elec. Trans. Svcs., Loan Sup. Svcs., Other IT Svcs., Prof. & Mgmt.

5 Card Services for Credit Unions (CSCU) FL CC Lns., Elec. Trans. Svcs., Other, Other Mem. Svc.

6 CU Direct Corporation

CA Auto Lns., Loan Sup. Svcs., Other Lend., Other Mem. Svc.

7 Wiscub, Inc.

WI Elec. Trans. Svcs., Other Mem. Svc.

8 Xtend, Inc.

MI Bus. Lns., Other Mem. Svc., Prof. & Mgmt. Svcs., Sh. CU Br. (Svc. Ctr.) Ops.

9 Credit Union Centers L.L.C.

IN Other, Other Mem. Svc., Sh. CU Br. (Svc. Ctr.) Ops.

10 C. U. Mortgage Services, Inc.

MN Bus. Lns., Ins. Brok. or Agcy., Loan Sup. Svcs., Mort. Lns., RE Brok. Svcs., Sec. Brok.

11 ICUL Service Corporation

IL CC Lns., Ins. Brok. or Agcy., Loan Sup. Svcs., Other IT Svcs., Other Mem. Svc.

12 CU Solutions Group

MI ALM Svcs., Other Mem. Svc., Prof. & Mgmt. Svcs.

13 CU Cooperative Branching, LLC

LA Other Mem. Svc., Sh. CU Br. (Svc. Ctr.) Ops.

14 Pennsylvania CU Svc. Centers Inc.

PA Other Mem. Svc., Sh. CU Br. (Svc. Ctr.) Ops.

15 CU Svc. Company of Virginia, LLC

VA Other Mem. Svc., Sh. CU Br. (Svc. Ctr.) Ops.

CUSO Financial Services LP

CA Ins. Brok. or Agcy., Other Mem. Svc., Sec. Brok., Trust and Rel. Svcs.

17 Credit Union Mortgage Association, Inc. VA Mort. Lns., Other Lend., Other Mem. Svc.

18 CU Service Network

CO ALM Svcs., Other Mem. Svc., Sh. CU Br. (Svc. Ctr.) Ops.

19 Cooperative Services, Inc.

GA Elec. Trans. Svcs., Other, Other IT Svcs., Other Mem. Svc., Sh. CU Br. (Svc. Ctr.) Ops.

20 Member Business Lending, LLC

UT Bus. Lns., Loan Sup. Svcs., Other Lend., Other Mem. Svc.

21 Members Trust Company

FL Other Mem. Svc., Trust and Rel. Svcs.

22 Callahan CU Fin. Svc. LLLP (CUFSLP)

DC Other, Other Mem. Svc., Prof. & Mgmt. Svcs., Sec. Brok.

Community Bus. Lenders Svc. Co. LLC IA Bus. Lns., Loan Sup. Svcs., Mort. Lns., Other, Other Lend., Other Mem. Svc.

MEMBERS Development Co., LLC

KS Other Mem. Svc., Prof. & Mgmt. Svcs.

25 Palmetto Cooperative Services, LLC

SC Elec. Trans. Svcs., Other Mem. Svc.

26 Service Centers Corporation

MI Other Mem. Svc., Sh. CU Br. (Svc. Ctr.) Ops.

Wisconsin CU Shared Svc. Centers

WI Other Mem. Svc., Sh. CU Br. (Svc. Ctr.) Ops.

28 Credit Union Members Access Co.

SC Elec. Trans. Svcs., Other Mem. Svc., Sh. CU Br. (Svc. Ctr.) Ops.

Florida CU Shared Services, Inc.

FL Other Mem. Svc., Sh. CU Br. (Svc. Ctr.) Ops.

30 Members Mortgage Services, LLC

KS Loan Sup. Svcs., Mort. Lns., Other Mem. Svc.

Carolina Credit Union Services

SC Other, Other Mem. Svc., Sh. CU Br. (Svc. Ctr.) Ops.

32 CU Wallet LLC

CA Elec. Trans. Svcs., Other Mem. Svc.

33 CU Service Centers, INC

AL Other Mem. Svc., Sh. CU Br. (Svc. Ctr.) Ops.

34 Centennial Lending, LLC

CO Bus. Lns., Loan Sup. Svcs., Mort. Lns., Other, Other Lend., Other Mem. Svc.

35 Synergent

ME Data Proc., Disast. Rec. Svcs., Elec. Trans. Svcs., Other IT Svcs., Sh. CU Br. (Svc. Ctr.) Ops.

36 CUILA, LLC

CO Auto Lns., Loan Sup. Svcs., Other Mem. Svc.

37 CU Anytime, LLC

NM Other Mem. Svc., Sh. CU Br. (Svc. Ctr.) Ops.

38 Universal Sharing Network, Inc.

NY Other Mem. Svc., Sh. CU Br. (Svc. Ctr.) Ops.

Shared Branching of Utah, Inc.

UT Other Mem. Svc., Sh. CU Br. (Svc. Ctr.) Ops.

40 ARCUSO Inc.

AR Auto Lns., Other Mem. Svc.

# of CU Owners 772 425 267 129 116 83 78 70 68 62 57 55 52 50 45 45 44 43 41 39 38 37 37 37 34 33 33 32 32 30 30 29 28 27 25 24 23 22 22 20

All Leader Tables Source: Callahan & Associates, NACUSO, NCUA, and Voluntary Verification ? 2017 CALLAHAN & ASSOCIATES, INC | |

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download