WARREN, Mich. - Ten mid- to small-sized Michigan credit unions are finding there’s strength–and buying power–in numbers. CU Partner Solutions, LLC, was formed two years ago to help CUs fight shrinking margins by reducing expenses and creating the kinds of efficiencies of scales usually reserved for larger credit unions.
The CUSO has a simple philosophy: CUs can accomplish more together than individually.
Dennis Moriarity, vice chairman for CU Partners and president of $36-million Unity Credit Union in Warren, Mi., says the strategy is working. “What we are doing is taking a look at the many things we do as credit unions and consolidating our efforts where we can. We’re trying to leverage our resources to get better deals for all of us. It’s a survival technique,” he said.
Of the many efforts the CUSO has engaged in, it has negotiated a discount program from Office Depot, obtained a reduced membership in the Michigan corporate’s business solution product, created a shared marketing and advertising group, cut printer toner cartridge expenses in half, and is now working with a CPA to reduce costs for all of the CUs’ Form 990 preparation. Late last year CU Partners signed to offer CUSO Financial Services LP’s online consortium program to its member credit unions. The online program helps mid-sized and small credit unions create their own web-based securities program.
“This is absolutely critical,” Moriarity said. “We have to be able to provide these services and discounts. As time has gone by, small CUs have been pretty well discounted by the (trade associations). We really have to do this ourselves, and the way we are going to do it is through this CUSO environment.”
On the horizon is a look into better opportunities for the CUs’ pension programs by consolidating those assets and speaking with potential new providers. A pilot program on retail direct lending is in the works, as well as a package of services for business clients. Employee education is another area that offers opportunity to save money and time.
“Employee education programs are mandated–and we are going to do them in an economical fashion. We’ll develop an educational program once and spread it throughout our CUSO membership,” Moriarity said, adding that the CUSO is looking into methods to deliver education after normal business hours since many small CUs can’t pull their staff off the front line during the day.
While initial ideas for initiatives can be delivered through a quick e-mail or phone conversation, CUSO members meet once each month to introduce new proposals, share progress on current projects, and openly exchange ideas.
“Our process is very informal, honest, and frank–which it has to be,” Moriarity said. “And we come up with sound conclusions and direction...We don’t have the resources to waste a dime. And the good thing about this CUSO is that everyone understands that.”
Members of CU Partner Solutions are: Affinity Group CU, Clawson Community CU, Kensington Valley Community CU, ROME CU, Unity CU, Birmingham-Bloomfield CU, Automotive FCU, Telcom CU, Michigan Services CU and Chiropractic Federal.
