CUSO model streamlines back-office services
Shared services allow small credit unions to focus on member engagement.
Tennessee Credit Union League Chief Innovation Officer Kim Bohannon (left) and ValleyStar Credit Union Chief Marketing Communication Officer Becky Freemal.
Small credit unions survive on their personal relationships with members. But back-office support, while essential to the survival of any financial institution, can be resource intensive and diminish member engagement opportunities for credit unions with limited assets, especially in an age where technology and compliance require both high-cost and dedicated expertise.
Fortunately, the credit union system offers solutions to back-office challenges through outsourcing and collaboration. Among the solution providers is Aux, a 55-owner credit union service organization (CUSO) offering back-office services including accounting, compliance, and data analytics.
“Our mantra is to help small and medium-size credit unions avoid what they often think is the only option—merge to survive,” says Alan Bergstrom, vice president of marketing and business development at Aux, a CUNA associate business member at the associate level. “We don’t believe that’s the right direction for every credit union. We want to give them an alternative to be able to survive and thrive. The credit union movement is much stronger with more credit unions here to serve consumers.”
Bergstrom notes that the collaborative model of the CUSO structure makes Aux’s services accessible for virtually every credit union.
continue reading »
