CNBS Broadening Beyond CUs, Will Market to Other Financials

OVERLAND PARK, Kan. – CNBS may be owned by credit unions but its services aren’t just for credit unions any more. “At our planning session we were given the green light to go after any institution’s business – banks, thrifts, insurance companies, etcetera,” said CNBS President Brian Hague. “We’ve begun to do that.” Hague said CNBS now has about 20 banking clients, mainly brought over from a new CNBS broker who brought his banking book of business with him. Hague said the CNBS Board is 100% behind the move. “They agree that banks and bank dealers work with credit unions so why shouldn’t CNBS work with banks.” CNBS looks a lot different than it did just year ago. This year it opened up its ownership to natural person credit unions – five have bought a stake in the company. It also gave its corporate owners a chance to sell their ownership due to some corporates competing directly with CNBS through broker/dealer CUSOs or by using U.S. Central’s broker/dealer subsidiary, ISI. Ten of its 18 corporate owners sold their ownership stake. Hague said the non-credit union business came knocking. “Other institutions came to us on an unsolicited basis. We thought what we could do if we went after them,” said Hague. He stressed that although CNBS will service non-CU institutions, ownership will only be available to credit unions. Opening up to other institutions helps CNBS in one key area. “Our revenues tend to be cyclical on the transaction side, subject to credit union liquidity. This can help us diversify that and stabilize revenue,” said Hague. He said CNBS owners were open to the idea because it can boost revenue and in turn boost any dividend that they may receive as owners. He predicted that CNBS would award a dividend this year based on the success so far. In other news, Arizona FCU President/CEO Ron Westad was re-elected to the CNBS Board, and Linda Romine, President/CEO of Electrus FCU, Minneapolis was elected to the board. Westad serves as treasurer and Romine as secretary. FirstCorp President/CEO Pete Pritts is chairman and Louisiana Corporate CU President/CEO Dave Savoie is vice chairman. Hague also serves on the five-person board, but is not an officer. [email protected]