Why form a CUSO?
CUSOs provide an opportunity to enhance financial services to members while generating non-interest revenue. Providing access to additional financial services is essential to serving the financial needs of the members. CUSOs provide credit unions with the means to generate additional non-interest income that is essential for credit unions to survive and thrive in the future. Most credit unions will not be able to survive in the long term on the spread between interest income and the cost of funds. CUSOs are also used as a vehicle to combine resources among credit unions and achieve economies of scale for both financial and operational services. In other situations where the service could be provided in either the credit union or the CUSO, CUSOs offer advantages over the credit union. The following are some specific reasons to form a CUSO.
CUSOs provide an opportunity to enhance financial services to members while generating non-interest revenue. Providing access to additional financial services is essential to serving the financial needs of the members. CUSOs provide credit unions with the means to generate additional non-interest income that is essential for credit unions to survive and thrive in the future. Most credit unions will not be able to survive in the long term on the spread between interest income and the cost of funds. CUSOs are also used as a vehicle to combine resources among credit unions and achieve economies of scale for both financial and operational services. In other situations where the service could be provided in either the credit union or the CUSO, CUSOs offer advantages over the credit union. The following are some specific reasons to form a CUSO. 1. Legally Required for Some Services. CUSOs are still legally needed for some services (e.g. trust services and insurance agency services). 2. Colla
