5 reasons to use credit union service organizations
by: Austin Wentzlaff
“[CUSOs] provide a means to an end – allowing credit unions the capability to fulfill the financial needs of their members in a cost effective environment through efficient delivery channels. Plus, they attract the brightest and most innovative minds to the board table, bringing best practices of credit unions across the country, which is a priceless experience.” – Doug Petersen president/CEO of Workers’ Credit Union.
A Credit Union Service Organization (CUSO) is an organization formed and/or owned by one or more credit union(s) to provide a specific product or service within the industry. CUSOs provide credit unions a method to spur innovation, increase efficiencies through specialization, and gain economies of scale. CUSOs leverage the power of collaboration that already exist within the industry to offer several benefits such as:
- Economies of Scale
Economies of scale are achieved when a company produces goods and services on a larger scale while simultaneously lowering average input costs. CUSOs achieve economies of scale by producing goods or services for several credit unions rather than having a single credit union attempt to replicate the same benefit. By utilizing the power of collaboration, CUSOs can specialize on a given product or service which enables them to provide higher-value products and services at a much lower cost.continue reading »