ONTARIO, Calif.-CURoots Cooperative-a CUSO launched in 2010 by several credit unions and the California and Nevada CU Leagues as part of an effort to use collaboration to reduce back-office costs-will be unveiling new products and services in 2012.
The CUSO's initial service offering included onsite and remote compliance services, specialized compliance audits, and policy reviews. CURoots has grown to include 14 participating member-owner credit unions and two CUSOs. It employs three full-time compliance officers.
Lucy Ito, who carries the dual titles of president and CEO of CURoots and SVP of credit union growth and development for the California and Nevada CU Leagues, said the focus for CURoots during 2011 was on shared compliance services.
"We have three compliance officers being shared by 10 credit unions," she explained. "The 10 credit unions using these compliance officers represent just shy of $2.2 billion in collective assets, with the smallest being $7 million in assets and the largest $600 million."
Ito said the participating CUs are finding the arrangement "more cost effective" than attempting to hire their own compliance officers, with one CEO saying he has been able to cut his compliance costs by more than half.
"Our challenge is to deliver compliance services in an efficient manner," she said. "The way we can return greater value is to standardize our service delivery as much as possible. Right now we serve an average of three to four credit unions per compliance officer, but moving into 2012 we are working on serving seven or eight credit unions with a single compliance officer.
Next Up: Reducing Benefits Costs
For 2012, the CUSO is looking at "enhancing" its shared compliance services and, in collaboration with the California and Nevada CU Leagues, it will launch CU Vitality, a new service that will offer a collective benefits solution, including medical, dental, and vision plans, for member-owners.
In addition, CURoots plans to launch an Enterprise Risk Management division in 2012 to include internal audits and loan portfolio analysis.
"We make certain functions more affordable by sharing with other credit unions," she said. "By making a larger headcount for insurance we can help credit unions to offer better benefits to attract and retain good employees. With CU Vitality, they can offer a richer benefit package."
Ito acknowledged that CU Roots has heard from credit unions enthused about the concept, but concerned over making a $20,000 investment to become a CURoots member. In response, CURoots will be making some of its services available to non-members with an upcharge, she said, "so they can access CURoots services if they aren't in position to make the member investment."
