What Is a CUSO and How Does It Help?

Working with a credit union service organization (CUSO) is one of the best ways for credit unions to improve their operations and become more profitable. We are breaking down everything you need to know about CUSOs and explaining the many benefits credit unions can reap from outsourcing certain operational functions to these organizations.

What Is a CUSO?

A CUSO is a type of corporate entity owned partially or wholly by a federally chartered credit union. In some cases, multiple credit unions will invest in or extend a loan to the CUSO.

The organization must be considered one of the following:

  • C corporation
  • Limited liability company (LLC)
  • Limited partnership

CUSOs can provide credit unions with specialized services they would need to outsource or hire new team members to complete. The services CUSOs offer aim to uplift and enhance credit union operations to serve their members better.

CUSOs are subject to the same examinations and guidelines as credit unions. The Federal Credit Union Act outlines all the federal rules these organizations must follow in Title 12 Part 712.

The National Credit Union Administration (NCUA) oversees and regulates all CUSOs across the country. In addition to abiding by federal laws, CUSOs must follow state regulations. They must also follow any applicable rules regarding the specific services they provide.

A CUSO’s primary role is to help credit unions by filling a gap in their operations and enhancing their overall mission. They make life easier for credit unions trying to provide their members with the best services and offers. As of 2021, 1,012 credit union service organizations were registered with the NCUA.

Services CUSOs Provide

CUSOs can provide credit unions with various financial and operational services. The NCUA outlines all of the potential services that a CUSO may offer. The following are the major categories of preapproved activities and services outlined in Part 712.5 of Title 12 regulations:

  • Checking and currency
  • Clerical, professional and management
  • Electronic transfer
  • Financial counseling
  • Fixed asset
  • Insurance brokerage or agency
  • Leasing
  • Loan origination and support services
  • Payroll processes
  • Real estate brokerage
  • Record retention, security and disaster recovery
  • Security brokerage
  • Service center operations
  • Travel agency
  • Trust services

Credit unions can turn to CUSOs for dozens of different services, ranging from credit analysis to real estate settlement duties. There are endless ways for a CUSO to lighten a credit union’s load and streamline its operations.

Comply-YES! is a CUSO dedicated to providing credit unions with compliance outsourcing solutions. Our primary offers include the following:

  • Audit and review services
  • Stand-alone compliance services
  • On-demand compliance officer services

Within each of these categories, we can fulfill a wide range of tasks and responsibilities, ranging from developing policies to managing internal audits.

Comply-YES! is here to tackle all compliance-related needs for credit unions so they can focus on providing excellent service to their members.

As the authority on credit union compliance, we understand what it takes to keep your operations within regulation while saving time, energy and money. Our team helps credit unions fulfill their compliance needs so they don’t have to hire new personnel or try to carry out important audits on their own.

Professional compliance services from Comply-YES! enable credit unions to do the following:

  • Determine what areas of operation can benefit from more effective and refined compliance procedures.
  • Approach compliance needs and associated risks proactively instead of reactively.
  • Improve resource allocation and implement strategies to conquer compliance.
  • Consult with experienced and knowledgeable compliance experts.
  • Keep a pulse on changing compliance trends and developments.
  • Foster more meaningful and solid relationships with members.
  • Boost their team’s overall productivity.

The Purpose of a CUSO

As not-for-profit entities, credit unions must find strategic ways to generate income and keep operations running efficiently.

While trying to boost revenue and serve their members to the best of their ability, credit unions face a few key hurdles, including:

  • Mitigating risks.
  • High operational costs.
  • Inadequate net income.
  • A need for more expertise.
  • Scaling services within budget.
  • Diversifying services affordably.

CUSOs help credit unions solve these issues and improve overall operations in various ways.

Firstly, CUSOs can lower costs for credit unions by taking over specific duties and job functions at a more affordable rate than hiring new staff. These organizations also help credit unions afford access to greater expertise.

CUSOs help credit unions achieve lower administrative costs and gain more lending opportunities, boosting their net income. When competing against larger, full-service financial institutions, credit unions need to increase revenue and operational efficiency to expand their offers. With support from a CUSO, they can often afford to introduce more new products or services to their members. Similarly, working with a CUSO allows credit unions to scale more easily.

By sharing risks across credit unions, CUSOs can also help during the development and rollout of new technology, services and products.

Overall, these organizations provide services that help credit unions improve their processes and deliver the most to their members. Without the help of a CUSO, a credit union may struggle to overcome the common problems of running a successful, not-for-profit financial operation.

Affordable Services

CUSOs provide affordable services to credit unions, allowing them to grow and improve.

The expertise and support from working with a CUSO enable credit unions to boost productivity and problem-solving, leading to greater cost savings. Credit unions can also save on the following with support from a CUSO:

  • Hiring talent
  • Retaining staff
  • Operational costs
  • Technology expenses

Comply-YES! offers affordable compliance services that help credit unions manage and carry out these important duties. Our solutions assist financial institutions by improving their operations and meeting all compliance standards.

Credit unions that neglect their compliance requirements could end up paying more if they incur fines or penalties from the NCUA. Comply-YES! is here to manage credit union compliance responsibilities while helping them save more money.

Contact Comply-YES! to Learn More About Our Services

When you work with Comply-YES!, you are not a client or customer — you are our Ally. We want to help your credit union conquer its compliance needs with custom, cost-effective services to elevate your operation.

As a CUSO, our goal is to make compliance easy. That’s why we offer credit unions all-inclusive compliance outsourcing, auditing and consulting solutions. From staff and director training to Bank Secrecy Act audits, our services are here so your credit union can focus on serving its members.

Are you interested in learning more about the perks of working with a CUSO? Contact Comply-YES! today!

Would you like to share?