As technology propels forward at breakneck speeds, credit unions often feel an overwhelming pressure to invest in new technologies to keep on par with the competition and ensure relevance and success in today’s market. However, such technology comes with a hefty price tag, not to mention the vendor due diligence and regulatory compliance that accompany these products, that smaller institutions simply do not have the means to infuse money into.

When these institutions fail to offer the same products and services to their members as other financial institutions, they can struggle with growth and member retention. Yet no matter their size, these credit unions are critical to their communities and the members they serve. This outlook can feel dire, but what these credit unions lack is simply the right partner to help them achieve their goals and serve their members with the same offerings as institutions much greater in size. This is where cooperative CUSOs come into play.

Cooperative CUSOs as a credit union partner

At their core, cooperative CUSOs exist for the same reason credit unions do: in the name of “people helping people.” The cooperative CUSO business model is, therefore, tied closely with the credit union business model. Woven throughout the foundation of the cooperative CUSO is a commitment to the power of ownership with the ultimate goal of providing worthwhile products and services to their credit union owners that can support their success.

Cooperative CUSOs strive to cultivate better opportunities for their credit unions by working as powerful industry disruptors in price, access, and resources. As disruptors, these CUSOs create greater access to products and technology at lower price points while simultaneously providing a network of support and shared resources. Owned by the very credit unions they serve, cooperative CUSOs are a credit union’s greatest ally, supporter, and partner.

Reinventing the wheel

However, despite the longstanding status and proven success of credit union-owned CUSOs, there has been a recent wave of new cooperative CUSOs taking to the market, attempting to pass off this business model as an invention all their own. A groundbreaking discovery. The next “big thing.” And they want credit unions to buy into it at prices that reflect that of a new creation, ignoring the reality that they are not the first, but simply the newest.

Instead of falling for the reinvented wheel and risk being swept away by the glitz and glamor that these new players advertise (and paying the price that comes along with that), credit unions should instead look to cooperative CUSO partners with a proven history of putting their credit union owners at the center of their business strategy. Remembering that cooperative CUSOs are to credit unions what credit unions are to their members, credit unions should look for a CUSO partner with all the same priorities and foundational beliefs as the credit union.

Thankfully, the good news for credit unions is since cooperative CUSOs are not new, despite the business model being repackaged and sold recently as though it is, there are a number of reliable and trustworthy cooperatives that have been working alongside credit unions as steadfast partners for decades. The key, then, is finding the right cooperative partner. One whose values reflect those of the credit union.

A CUSO 55 years in the making

This spirit of collaboration and the power of ownership are at the heart of our cooperative CUSO, CU*Answers. Founded in 1970, CU*Answers has been supporting credit unions both large and small by bringing new products and technology, operational assistance, custom integrations, and a whole network of support to their credit union owners for over five decades.

When our organization was originally formed as WESCO, it served a small community of local credit unions by providing low-cost data processing services. The organization has expanded and evolved over the years, but our primary mission of being a dependable partner for credit unions, providing access to valuable tools and services, and giving credit unions a voice in defining their own future has stayed the same.

Today, nearly 400 credit unions across 42 states depend on our CU*BASE platform—many our own clients, and others as clients of our cuasterisk.com network partners CU*South, CU*NorthWest, and CUaxis. As we embark on our next voyage, with the network wide release of our all new CBX core platform in the coming year, we look forward to seeing how we can continue meeting our credit unions’ needs in the area of technology and services, all within this cooperative framework that has proven a winning model.

We have been blessed with tremendous success over the years. We are proud of our achievements, but we are also grateful to our credit union owners whose belief in the cooperative spirit has been critical to that success. Whether it’s participating in betas, collaborating in roundtable discussions on improving our products and services, or volunteering their time to serve on the board of directors, that belief in CU*Answers has allowed us to give back in turn through reduced pricing and millions of dollars in dividends.

The perfect team

Cooperative businesses such as CU*Answers and the cuasterisk.com network have been serving credit unions for decades and will continue to do so for decades more. A true cooperative CUSO aims to be not only a partner but a credit union’s greatest supporter and resource. That equal partnership should be the priority of any cooperative CUSO, new or old. Take care not to fall for marketing campaigns that sell this tried and true business model as a groundbreaking initiative at higher prices or ones that emphasize advances in technology over all else.

And if you’re still looking for the right CUSO partner, CU*Answers and the cuasterisk.com network are ready and waiting to hear how we can support your credit union now and in the future.