The total assets of all U.S. credit unions totals a little over two trillion dollars. Meaning that the entire CU industry would be a top three bank when ranked by asset size; bigger than Citibank but smaller than BofA and far behind JPM Chase which is ranked number one by assets. The biggest credit union ranked by asset size would be a top 25 bank (Navy FCU) and number two (SECU), a top 50 bank.
When it comes to complexity, everyone’s business is getting more and more complex no matter the asset size. However, this also means it is becoming more expensive to maintain. So how do credit unions keep up with the Big Banks? Large and small credit unions continue to turn their operations over to CUSO’s for various reasons. According to Guy Messick, CUSO Guru and United Solutions board member, CUSOs help their credit union owner/clients by aggregating operational functions so that the cost per credit union is lower. This helps lower the cost of operations, raise the level of expertise, provide additional member service, scale with affordable access to key services, and share risk across several credit union owners. So, when does a credit union know when to turn over a department or job to a CUSO or third-party vender?
- The first step would be looking at the department or position and asking if you’d receive the same or better service from a CUSO.
- The next step would be reviewing the cost. Would it cost me less time, money and energy to use a CUSO for this job function? For certain categories, such as, Networking, Core Processing, or even collections and imaging, these are easy to see the benefits when reviewed.
- Lastly would be to research and review your options. Search the NCUA CUSO Registry for Registered CUSO’s in the United States. Utilizing these resources can help you find the right the fit!
United Solutions (USC) is a technology cooperative that has been helping our clients thrive for over 40 years. According to the NCUA, “CUSOs at a Glance”, CUSOs offer services including lending, operations, member service, payment, IT and Investments. While many credit unions know we offer core processing IT services, we also provide operational support with outsourced operations such as collections. CUSOs primarily serve credit unions or members. United Solutions offers high-touch, well-informed and lower cost services to credit unions of all sizes.
“It's not the size of the dog in the fight, it's the size of the fight in the dog” has been attributed to Mark Twain, Dwight Eisenhower, Bear Bryant and journalist, Arthur Lewis. So, who are you calling small? You, you’re a credit union, so you are likely to be smaller than just about everyone else in your market but you’re better when you have a CUSO like United Solutions in your corner to help you serve your members and compete in the marketplace.
