Business Services CUSODebuts

MIRAMAR, Fla. - (11/29/05) -- A business services CUSO launched inJuly of this year is already reporting, coincidentally enough, asmuch business as it can handle. CU Business Capital, LLC, a CUSO ofEastern Financial Florida Credit Union, said it is on track to signon 35 credit unions as clients and/or partners in 2006, at least 20of which will be what it calls Tier 2 investors putting up $25,000each. It is further on track to add a full complement of equityinvestor credit unions by the completion of 2006. Equity investors,of which EFFCU is one, are entitled to a board seat, and will belimited to seven. Bert Bryan, president of CUBC, said those equityinvestors will be credit unions as large as ($2 billion) or largerthan Eastern Financial. CU Business Capital (CUBC) is positioningitself as a one-source model, and stressing that it provides tocredit unions a complete package of services for small-businessowners, especially on the deposit side, where many credit unionofferings are weakest but which has the potential to offer thestrongest revenue stream.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER