LAS VEGAS-A quintet of companies and CUSOs competed to be the "Next Big Idea" in credit union land at NACUSO's Annual Conference here, with the title going to a company that converts accounts receivable into cash.
NACUSO, with assistance from the Filene Research Institute, staged the competition as an homage to the ABC television show, "Shark Tank." It had four credit union industry representatives on stage firing questions at the presenters, who each had eight minutes to make their sales pitch.
The panel consisted of Sarah Canepa Bang, president of FSCC and chief strategy officer for CO-OP Financial Services' Jeff Russell, CEO of TMG Financial Services [on April 22 Russell announced he was leaving TMG FS to become CEO at Delta Dental of Iowa]; Vic Pantea, president and CEO, Pantea Consulting, and Michael Kelly, president and CEO, PSCU.
NOWaccount Network Corp. was the winner, based on a vote of conference attendees. It has a distribution agreement with CU Partner Link, a CUSO that is marketing the NOWaccount service to credit unions across the U.S.
CU Partner Link shares a portion of the income generated with both the CU that enrolled the business and the state league to which the credit union belongs.
President and CEO Lara Hodgson told the audience NOWaccount proposes to help small businesses turn some of the $1.2 trillion in accounts receivables on their books into immediate cash in exchange for a 2.5% fee.
The Other Big Ideas
Hodgson said the company helps credit unions in four ways: It is a service CUs can offer to their small business members and prospects; It strengthens SEG relationships by being a direct benefit to the companies themselves; it generates fee income; and it is an investment opportunity.
HypeKick is a CUSO that partners with credit unions to offer their members merchant-funded offers. It said it is different from Groupon and similar companies not only in the targeting it can do based on transaction histories, but it has a component that allows members to finance large purchases-such as an overseas vacation or a big-screen television. "Everyone is going to buy something," the company said. "HypeKick wants to make sure they buy through their credit unions."
Credit Union Exchange Blueprint is a product the its creator, Birmingham, Ala.-based EPL, said can be offered through credit unions or CUSOs to address the fact many millions of consumers will have to obtain health insurance from sources other than their employers starting in 2014 under the Affordable Care Act. EPL CEO Wayne Benson will be a featured presenter at CU Journal's Grow Show, where he will discuss the concept.
CU Revest, LLC said it has been buying debt from financial institutions for the last 15 years. The company proposes to recapture value lost on charged-off loans in exchange for investment units.
According to the company, the charged-off loans are worked without further cost to the CU, while CU participants share in any recovery made.
JA Bentley & Co. is a provider of life insurance distribution. The company said its "InstaQuote" obtains quotes from up to 60 life insurance companies and sells it under the credit union's name. The company said it pays an average of 37% commissions. CU members can buy from the credit union via referrals or directly from JA Bentley.
