OVERLAND PARK, Kansas — Since its founding in 1989, CNBS has seen many players rise and fall in its segment of the cooperative industry. Originally owned by U.S. Central and CUNA, the investment services CUSO first competed against First Boston and one other brokerage with credit union clients. The latter failed entirely, while First Boston became part of Credit Suisse and had its CU arm dismantled; the federal government is now running the corporate that once owned 70% of CNBS.
"We've stood that test of time," said the CUSO's President/CEO Brian Hague. "We've seen a lot of players come and go and we have no plans of going away."
As more credit unions moved away from corporate certificates in the 1980s and began to access the securities markets themselves, it became evident that some entity needed to be created to guide them in their investments. Enter CNBS. The CUSO quickly added advisory and risk management services and bond accounting within its first six years and now provides a plethora of financial advice as well as market access to its clients.
"We take a comprehensive approach-not only doing portfolio analysis but taking an entire balance sheet perspective," said Hague, noting that it will go so far as to provide branch expansion analysis and product pricing for its clientele. "As soon as we start doing something new, they'll take advantage of that."
When CNBS was first getting off the ground, it pitched its services by making a very personal appeal to credit unions, saying that "we are good guys, and we're part of the (cooperative) network." After some time Hague decided to switch it up and stress the competency, professionalism and effectiveness of the CUSO, telling clients to "do business with us because we are really good... and, oh, by the way, we are part of the network."
CNBS started its popular Institute series in 1996, which has helped its clients not just understand what to buy from them, but given their investment staff as much information and education as possible so they can make the best decisions for their institutions. Hague is proud that the CUSO has been built on a "foundation of client education." He also sees a bright future ahead for the firm and other investment CUSOs. As the corporate system is likely to become an even less popular investment destination, and possibly inaccessible for long term investments depending on new regulations, there will be more and more room for CUSOs like CNBS to help natural person CUs and corporates alike find good places to put their capital. Hague is not sure exactly what CNBS will offer in the future, but he's confident that credit unions will be well-served by the CUSO for many more years to come.
"As CUs' needs evolve we tend to respond to those needs," he said.
