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CREDIT UNION COOPERATIVE STRUCTURES Presented by: Patricia A. Sterner President JFB & Associates, LLC.

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Presentation on theme: "CREDIT UNION COOPERATIVE STRUCTURES Presented by: Patricia A. Sterner President JFB & Associates, LLC."— Presentation transcript:

1 CREDIT UNION COOPERATIVE STRUCTURES Presented by: Patricia A. Sterner President JFB & Associates, LLC

2 Four Models Credit Union Service Organization (CUSO) Credit Union Service Organization (CUSO) Credit Union Shared Service Center Credit Union Shared Service Center Credit Union Shared Management Credit Union Shared Management Credit Union Group/Affiliate Structure Credit Union Group/Affiliate Structure

3 Credit Union Service Organization Structure: For-profit entity that allows credit unions to Structure: For-profit entity that allows credit unions to Combine back-office operationsCombine back-office operations Provide extended financial products and services to members and nonmembers.Provide extended financial products and services to members and nonmembers. Products/Services: Products/Services: CheckcashingCheckcashing Discount brokerage servicesDiscount brokerage services InvestmentsInvestments Auto purchasingAuto purchasing Mortgage origination and servicesMortgage origination and services Benefits: Benefits: Shared costs result in lower fees for membersShared costs result in lower fees for members Financial services not otherwise available to membersFinancial services not otherwise available to members Ability to serve non-members, create path to traditional financial servicesAbility to serve non-members, create path to traditional financial services

4 Credit Union Shared Service Center Structure: Shared facility cooperatively owned by a group of credit unions. Structure: Shared facility cooperatively owned by a group of credit unions. Stand-alone facility built and owned by the groupStand-alone facility built and owned by the group Branches of participating credit unions that accept service center transactionsBranches of participating credit unions that accept service center transactions Products and Services: Products and Services: Access to most financial products/services utilized by credit union membersAccess to most financial products/services utilized by credit union members Benefits: Benefits: Convenient, personal service at no extra cost to membersConvenient, personal service at no extra cost to members Extended geographic reachExtended geographic reach Shared operating costs result in lower fees/higher dividendsShared operating costs result in lower fees/higher dividends

5 Credit Union Shared Management Structure: retain identity through shared management Structure: retain identity through shared management Corporate organization providing fee-based management and operational servicesCorporate organization providing fee-based management and operational services Cooperative model (credit union-owned)Cooperative model (credit union-owned) Management services provided by one credit union to anotherManagement services provided by one credit union to another Products and Services: Products and Services: Operational managementOperational management Recordkeeping and reportsRecordkeeping and reports MarketingMarketing Mortgage originationMortgage origination Teller supportTeller support Benefits: Benefits: Expanded range of servicesExpanded range of services Lower cost of operations increase dividends, lowers rates for membersLower cost of operations increase dividends, lowers rates for members Professional, full time managementProfessional, full time management Increased access to servicesIncreased access to services

6 Credit Union Group/Affiliate Structure Structure: Structure: Credit union partners with or creates affililate non-profit entity or entitiesCredit union partners with or creates affililate non-profit entity or entities Various models based on local community, financial needs and tasks, organizational culture and mission.Various models based on local community, financial needs and tasks, organizational culture and mission. Products and Services: Products and Services: Seeking and administering grants and contractsSeeking and administering grants and contracts Financial counselingFinancial counseling Mortgage originationMortgage origination Back office servicesBack office services Research and developmentResearch and development Payroll and personnel managementPayroll and personnel management Benefits: Benefits: Expanded access for potential membersExpanded access for potential members Decreases regulatory riskDecreases regulatory risk Decreases credit union costs resulting in better rates and services for membersDecreases credit union costs resulting in better rates and services for members Allows access to additional financial products not offered by the credit unionAllows access to additional financial products not offered by the credit union Provides for related services such as financial counselingProvides for related services such as financial counseling

7 Resources Filene Research Institute Filene Research Institute Outsourcing and Sharing Credit Union ManagementOutsourcing and Sharing Credit Union Management Check Cashing and Savings Programs for Low-Income HouseholdsCheck Cashing and Savings Programs for Low-Income Households National Federation of CDCUs National Federation of CDCUs Community Banking Partnership: Legal Structures that WorkCommunity Banking Partnership: Legal Structures that Work The Coop Network: The Coop Network: Credit Union Service Center (CUSC): Credit Union Service Center (CUSC): Credit Union Service Organization (CUSO): regulatory information at Credit Union Service Organization (CUSO): regulatory information at


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