A Future of More CUSO, Bank Alliances?

GRAND RAPIDS, Mich. — Given the marketplace unrest rolling throughout the industry, are the days approaching when CUSOs, many of which take pride in being 100% credit union-owned and served, will seek out more alliances with banks?

The consideration may be controversial, but discussions are happening on the possibility. NCUA regulations allow a CUSO to sell to nonmembers as long as at least 51% of sales are to credit union members. With that regulatory threshold in mind, Credit Union Times sought feedback from three proponents of CUSO collaboration to get their perspectives on partnering with banks and if such collaboration dilutes the movement’s competitive edge.

Randy Karnes is CEO of CU*Answers, a Grand Rapids, Mich.-based multi-solution provider with more than 165 credit unions in 16 states. Together, the CUSO’s clients represent nearly 1.5 million members and $10 billion in credit union assets. CU*Answers is the 2008 recipient of NACUSO’s collaboration and innovation award.