Using our CUSO to support member needs

Sitting across the desk from our CEO, all I remember hearing was, “Andy, you are the new Vice President of the CUSO. You need to spend all day, every day making sure our CUSO makes us money.” I suppose this is where my CUSO Project began. Over the last 4 years, I have realized the CUSO will play an integral part in reaching our goal of providing 100% of the credit union’s annual operational budget from non-interest income. As of today, we are at 60%.

Though credit unions are subject to interest rate risk, we can minimize this risk in several ways. One way is by increasing non-interest income through various revenue streams. At Kemba, we have added 6 new products since I began my tenure as VP. Much like any good investment portfolio, I have tried to diversify our products to minimize interest rate risk even more.

Many of our CUSO products derived from member requests. I would often hear, “You have my checking account and auto loan; why can’t you do my auto insurance too?” or “I want to set up a Trust account at Kemba. I know you can take care of the financials, but where can I find a lawyer to draw up the legal documents?” Our response to these questions is always the same: We find the best way to serve our members. Since our members are looking to simplify their financial lives by having everything under one roof, Kemba is striving to become a one-stop shop. If we succeed, we can and will become their primary financial institution.

With Kemba becoming members’ primary financial institution in a non-traditional way, the result is win-win-win. Kemba becomes sustainable, remains relevant, and provides stellar member service.

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