CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Jobs
  • Contact

News

Home » Collaboration Power
Technology Operations

Collaboration Power

CUSOs provide affordable access to technology and expertise.

September 13, 2018
Ron Jooss
No Comments
CUSO

In 2017, during the aftermath of Hurricane Harvey, $3 billion asset Credit Human Federal Credit Union in San Antonio needed to provide members with pre-approved, short-term emergency funds. It found the answer in a credit union service organization (CUSO).

The CUSO, QCash, offers a cloud-based payday loan alternative, says CEO Ben Morales. The credit union wasn’t looking to generate loans or fee income. It simply wanted to give members instant access to funds.

“They wanted to automate and make their preapproved loan process more efficient,” he says. “Our engine does that well. So we made some adjustments to our system and built in some new capabilities, and we were able to help them.”

The takeaway: Technology and collaboration make credit unions stronger, individually and collectively, Morales says. “If you’re part of a CUSO, the tide raises all boats.”

By design, the CUSO model provides solutions. On an everyday, get-your-hands-dirty level, CUSOs solve problems and ease frustrations.

Given today’s competitive environment, never before has the CUSO model been more important to credit unions.

SIDEBAR: CUNA offers associate business memberships to CUSOs

“Through the CUSO model, credit unions can reduce costs and obtain high-level technology and expertise at less cost than if they did it themselves,” says Guy Messick, general counsel for the National Association of Credit Union Service Organizations (NACUSO). “I don’t know how cooperative financial institutions can meet today’s challenges without leveraging the advantages of collaboration and economies of scale.”

Many credit unions believe they can’t compete or innovate, Morales adds, but CUSOs give them that opportunity. “Through CUSOs, their voice will be heard, and they get the benefit of bigger ideas.”

At year-end 2017, 946 CUSOs registered with NCUA, 74% of which serve a single credit union.

“It’s a huge advantage for credit unions,” says Jack Antonini, president/CEO of NACUSO. “Banks, for example, don’t naturally collaborate. They also have anti-trust issues. So it’s a lot harder for them to do what we have a legal right do. Our cooperative principles are a really big deal.”

Here are some newer entrants on the CUSO landscape.

Constellation
The seeds for Constellation were planted in 2014, when Kris Kovacs served as chief information officer for $2.9 billion asset Coastal Credit Union in Raleigh, N.C. He read an article about a bank that was releasing its 150th app for small-business customers.

“That’s when we started to think about what a credit union app story would look like,” says Kovacs, who’s now president/CEO of Constellation. “We were doing some design work on mobile applications at the time. We eventually concluded there’s a different model for credit unions. Our model is about aggregating services into a single application.”

Kovacs began three years of research, and in 2017 he led the rollout of Constellation Digital Services, a cloud-based financial services marketplace and platform that allows credit unions and members to choose which services to use inside of a secure banking experience.

The company’s model calls for developers to become service providers and partners on the new platform. Developers can create “tiles” or services, and credit unions can purchase those services within the marketplace.

NEXT: CULedger

Previous 1 2 3 Next
KEYWORDS CUSO

Post a comment to this article

Report Abusive Comment

Credit Union Magazine: Winter 2022

Winter 2022

Credit Union Magazine’s Winter 2022 issue highlights data-driven marketing, the board’s role in cybersecurity, elder abuse scams, credit unions’ auto lending advantage, and more.
Digital Edition •  Subscribe

Trending

  • CFPB issues CUNA-opposed proposal on credit card late fees

  • Auto lending report shows significant credit union member savings

  • 2023 Credit Union Hero of the Year voting open

Tweets by CUNA_News

Polls

Vote for the 2023 CU Hero of the Year

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2023 Credit Union National Association | ADA Compliance Notice & Legal
Email Us