This is the premise behind CUSOs – entities, in many cases cooperatives themselves, formed by credit unions for credit unions. Built on the ideals of the movement, CUSOs are essentially "credit unions helping credit unions," a business model that is just as powerful at the institutional level as it is for the members that credit unions serve.

In fact, whether investing in a CUSO or merely accessing its products and services, credit unions that participate benefit exponentially. While many of the products and services offered through CUSOs are available on the open market, the collective bargaining power of the CUSO can help bring costs down. Plus, CUSOs bring to the equation a deep understanding of our industry, members and guiding principles.

Consider, for example, that many CUSOs are driven by service, and unlike commercial businesses are not chasing dollars for their own financial gain.  More often than not, the CUSO is formed to provide a service or product consistent with the needs and culture of its owner credit union(s). Pricing for products and services is kept as competitive as possible to support all participating credit unions, large and small. 

CUSOs are also unique in that they answer primarily to the credit unions that support them. Within a CUSO the voices of individual credit unions are more than heard – they are driving decisions, fulfilling visions and opening doors for all who participate.

Helping Credit Unions Innovate

CUSOs drive innovation and serve as conduits for market intelligence. While working directly with credit unions and business partners – in the case of CO-OP Financial Services, thousands of them – a CUSO can consult a wide range of analysts and other industry experts in order to pinpoint the products and services of most value to your members.

Rapid access to technology is another compelling benefit. In today's financial industry, there is no shortage of new technology. However, knowing which products will elevate the member experience can be a challenge. From advanced ATM platforms to the latest in mobile payment, digital banking and security innovations, a CUSO can provide both economies of scale for your investments in fintech and insightful guidance on which technologies to embrace – and when.

One of the most profound benefits a CUSO brings to an individual credit union is scale. Geographically, for instance, credit unions that partner with CO-OP Financial Services can extend their footprint across the nation and beyond through CO-OP ATM and CO-OP Shared Branch.

Credit unions also must keep pace with their members' service requirements. Many credit unions simply don't have the staffing to keep call centers open 24/7. But, a CUSO can and does offer this level of service to participating credit unions. 

The Power of the Partnership

By all measures, partnering with a CUSO makes sound business sense, allowing your credit union to focus on what you do best – serving members.

However, in order to make your partnership all it is intended to be, remember that the relationship is just that – a partnership. CUSOs are not vendors in the traditional sense, and as in any partnership, each party has a responsibility to do its part. 

So, represent your credit union on different committees, serve on the board of directors, and help guide the CUSO's technology and operational initiatives. By embracing the spirit of cooperation that underscores the CUSO mission, you can enhance your own success, increase your value proposition to members and help strengthen the credit union movement overall. 

Sarah Canepa Bang is executive vice president, corporate relations, for CO-OP Financial Services. She can be reached at 800- 782-9042, ext. 1205 or [email protected].