WARRENVILLE, Ill-Members Health Network-established by Members United Corporate FCU-now has participation from credit unions with about 600,000 members combined.
"We have been hard at work," said Peter Barnard, CEO of the CUSO. "We've been working with six large credit unions." Combined, the credit unions have $2 billion in assets.
Members United Corporate FCU formed the CUSO early this year with the goal of joining technology and services that would make credit unions real competitors in the world of Health Savings Accounts and health banking. The idea came from a strategic look the CU took to see if credit unions had a logical fit in the health industry.
"Our clients have IRA assets," Barnard explained. "This is really an IRA on steroids. The difference is it's tax free, as long as it is used for medical expenses."
The geographic location of the credit unions participating is "fairly spread out," Barnard said.
As for marketing, the CUSO has "done some advertising, and some direct communication," Barnard noted. "We spend a lot of time talking about what it means to have an HSA account. We spend a lot of time on one-to-one conversations, and spend a bit of time in airplanes."
Barnard admitted that the CUSO is growing at a slower pace than anticipated. But he's still very optimistic for increased growth.
"The current economy is deafening to us all," he said. "We actually see some opportunities out there. We have seen growth. When there are challenges, credit unions for years and years stick to their knitting of helping their members. And this is really one area we can help. Obviously there is an opportunity out there. We expect the business to grow rather substantially this coming year."
Members Health Network LLC is the CU's second wholly owned CUSO; the first one was Balance Sheet Solution LLC, an SEC-registered broker-dealer and investment-adviser.
Originally Reported In CU Journal: Jan. 7, 2007
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