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

5

Top 40 Multi-Owned CUSOs By Combined $ Investments/Loans From Credit Unions

6

Top 40 Multi-Owned CUSOs By $ Investments From Credit Unions

7

Top 40 Multi-Owned CUSOs By $ Loans From Credit Unions

8

Top 40 Wholly-Owned CUSOs By Combined $ Investments/Loans From Credit Unions

9

Top 40 Wholly-Owned CUSOs By $ Investments From Credit Unions

10

Top 40 Wholly-Owned CUSOs By $ Loans From Credit Unions

11

Top 40 Credit Unions By Number Of CUSO Participations

12

Top 40 Credit Unions By Combined Dollars Invested In/Or Loans To CUSOs

Multi-Owned CUSO Listing

Appendix: Service Offerings

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@

3-4

13

14-26

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

THE NEED FOR AND THE IMPACT OF CUSOS

By Guy A. Messick, NACUSO General Counsel

& Jack Antonini, NACUSO President & CEO

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 | |

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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.

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

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.

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.

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.

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.

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.

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?

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

St.

CO-OP Financial Services

CA

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

772

2

PSCU

FL

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

425

3

Credit Union 24, Incorporated

FL

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

267

4

CU*Answers, Inc.

MI

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

129

5

Card Services for Credit Unions (CSCU)

FL

CC Lns., Elec. Trans. Svcs., Other, Other Mem. Svc.

116

6

CU Direct Corporation

CA

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

83

7

Wiscub, Inc.

WI

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

78

8

Xtend, Inc.

MI

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

70

9

Credit Union Centers L.L.C.

IN

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

68

MN

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

62

1

10 C. U. Mortgage Services, Inc.

Services Offered

# of CU Owners

11 ICUL Service Corporation

IL

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

57

12 CU Solutions Group

MI

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

55

13 CU Cooperative Branching, LLC

LA

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

52

14 Pennsylvania CU Svc. Centers Inc.

PA

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

50

15 CU Svc. Company of Virginia, LLC

VA

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

45

CUSO Financial Services LP

CA

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

45

17 Credit Union Mortgage Association, Inc.

VA

Mort. Lns., Other Lend., Other Mem. Svc.

44

18 CU Service Network

CO

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

43

19 Cooperative Services, Inc.

GA

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

41

20 Member Business Lending, LLC

UT

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

39

21 Members Trust Company

FL

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

38

22 Callahan CU Fin. Svc. LLLP (CUFSLP)

DC

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

37

Community Bus. Lenders Svc. Co. LLC

IA

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

37

MEMBERS Development Co., LLC

KS

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

37

25 Palmetto Cooperative Services, LLC

SC

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

34

26 Service Centers Corporation

MI

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

33

Wisconsin CU Shared Svc. Centers

WI

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

33

28 Credit Union Members Access Co.

SC

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

32

FL

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

32

KS

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

30

SC

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

30

32 CU Wallet LLC

CA

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

29

33 CU Service Centers, INC

AL

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

28

34 Centennial Lending, LLC

CO

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

27

35 Synergent

ME

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

25

36 CUILA, LLC

CO

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

24

37 CU Anytime, LLC

NM

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

23

38 Universal Sharing Network, Inc.

NY

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

22

Shared Branching of Utah, Inc.

UT

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

22

AR

Auto Lns., Other Mem. Svc.

20

Florida CU Shared Services, Inc.

30 Members Mortgage Services, LLC

Carolina Credit Union Services

40 ARCUSO Inc.

All Leader Tables Source: Callahan & Associates, NACUSO, NCUA, and Voluntary Verification

? 2017 CALLAHAN & ASSOCIATES, INC | |

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