LAS VEGAS-Credit Union Journal asked CUSO representatives at the recent NACUSO Annual Conference what their biggest challenges are going forward. Those from credit unions were asked what big challenges they are facing that they hope can be solved by CUSOs.
Michael Nagl, VP
Warren FCU, Cheyenne, Wyo.
Credit unions need assistance with regulatory pressure. The CFPB is coming out with so many things, we need help just understanding what is going on. We know what NCUA wants, but all the new regulations are a burden.
We also are concerned about staffing. We want the correct number of people for different times of day. Our third concern is IT.
Sarah Canepa Bang, president, FSCC, and chief strategy officer, CO-OP
Financial Services, Camas, Wash.
The biggest threat is potential regulation of CUSOs. All those [CUSO] businesses are serving credit unions, and CUSOs cannot break any laws that affect other businesses. Regulations are designed to reduce risk, but you cannot regulate out all risk.
What is worse is the regulations may be reducing the chance of success. We are all risk-averse anyway, so creating another layer of challenges for new products and services reduces the chance for success in the credit union world.
Deborah Jones, strategic alliance
manager, Pantea Consulting, Seattle
The biggest challenge is credit union adoption of CUSO services. So many CUSOs get started from good ideas, but then adoption is poor. It is hard to say exactly why, other than a lack of collaboration.
Jeff Russell, CEO, TMG Financial
Services, Des Moines, Iowa
The balance between the need to create scale and the fact CUSOs typically only serve credit unions. CUSOs compete with the largest companies on the planet, and must win business, but do not serve banks or insurance companies. (Editor's note: Mr. Russell is leaving this position to join another firm).
Bryan Messick, commercial loan officer, Franklin Mint FCU, Broomall, Penn.
Credit unions need expertise in certain areas, including lending and back office. CUSOs can minimize expenditures for credit unions, making them a viable option.
Another area is technology. We must keep up with our competitors, but sometimes credit unions find it difficult to afford new products and services. Mobile banking and remote capture are services banks offer and have perfected. CUSOs help credit unions bridge that gap.
