The Emergence of a new Credit Union Industry Segment-Cooperatives!

Over the past ten years, growing credit union cooperation has led to the development of almost 130 multi-owned credit union CUSO's. Some of these organizations are large national firms such as PSCU Financial Services with over 500 credit union owner-users, 7.0 million member accounts and $327 million in annual revenue.

 
 

Over the past ten years, growing credit union cooperation has led to the development of almost 130 multi-owned credit union CUSO's. Some of these organizations are large national firms such as PSCU Financial Services with over 500 credit union owner-users, 7.0 million member accounts and $327 million in annual revenue.

Other multi-owned CUSO's are local in focus such as UniTrust in Arlington, VA which serves the broker-dealer service needs of its six local owners.


All these firms share a common value of cooperative effort for mutual advantage. These organizations also share common business challenges such as:

  1. Developing a viable capital structure;
  2. Expanding sales beyond the owner group to other credit unions;
  3. Finding and rewarding professional management;

These firms are becoming more critical in every aspect of credit union activity from surcharge free ATM networks, to mortgage lending and servicing, to shared branching and providing access to mutual fund and stock purchases. Even in a traditional activity such as auto lending, Credit Union Direct Lending and other local CUSO's are demonstrating that there is a direct correlation of auto lending market share and cooperation.

The role of these firms is so important that Callahan & Associates, Inc. has published a completely new Directory of Credit Union Cooperatives. This 158 page publication provides a complete list of the 130 multi-owned and the over 600 wholly owned CUSO's. Key partnerships and selected financial data is also provided.

To track this important new industry segment order this newly published Directory by clicking here.

 

 

 

April 28, 2003


Comments

 
 
 
  • Perhaps taking one and go into more detail e.g. CO-OP ATM Network
    Anonymous
     
     
     
  • I'd appreciate some more information on the business interaction process between a typical CUSO and its CU members. Thank you.
    Anonymous
     
     
     
  • Chip, we created a downstreaming holding company in about 1973 in San Antonio at the then Government Employees Credit Union. After receiving the charter, we put $1,000 in as capital. We let 2 examinations by the State Credit Union Department before we activated the holding company. We moved our data processing operations into it (we were already processing about 8 credit unions including Security Services FCU). And, later contracted with the Texas League to process credit unions throughout the state. This was not a good experience because of the hand-holding required and the dues hammer credit unions used to get extra service at no cost. We later bought a Corporate General Agency (paper only) for $70,000 and started using it for credit life and disability insurance. There were only 22 of these left in the state. They permitted premium income to flow back to the corporation instead of licensed agents. It was a huge success. We also organized a retail real estate agency and sold, financed and insured homes for our members. We would up with about 4 companies under the holding company. Today these are called CUSO's. We tried to get other credit unions to participate in ownership but were only successful with one small credit union. It is really time for credit unions to quit competing so viciously against each other and cooperate. Today, there is tremendous competition in the major cities in Texas. And, beginning in our small city. We have a credit union using the league's recapture program to solicit auto loans made to our members. I would have a very difficult time working with this credit union. I have signed up for the webinar on buying an insurance agency. I have found about 11 in the state for sale but none in the local area. We do participate with CUAC in Houston for indirect lending and with CENTRIX in Colorado. Jim Williams
    Anonymous