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NACUSO Collaboration will help CUs overcome economy
NEWPORT BEACH, Calif. (3/13/09)--Credit union service organizations (CUSOs) should collaborate with credit unions to help them overcome economic difficulties afflicting the country, said Thomas C. Davis, president/CEO of the National Association of Credit Union Service Organizations (NACUSO). This topic will be discussed at NACUSO’s 2009 Annual Conference to be held May 3-6 in Las Vegas. “The bad news is that credit unions are being assessed 62 basis points as part of the corporate bailout plan,” Davis said. “The good news is that credit union and CUSO executives have the power to make changes that will enhance their ability to overcome the difficult economic issues facing their credit unions. “Through collaborations and partnering with other credit unions, they can make back the 62 basis points and more,” he added. “Collaborations are currently creating salable platforms, earning millions of dollars in non-interest income, and saving millions of dollars in operational expense for credit unions.” Davis referenced data from Callahan & Associates’ peer-to-peer financial analysis, to emphasize the positive results of collaboration in the credit union industry. The data compares the five-year average annual performance of credit unions with an investment in a multi-owned CUSO versus those with no investment in it. Credit unions invested in a multi-owned CUSO had 7.04% asset growth, 9.51% loan growth, and 2.82% member growth. Credit unions with no multi-owned CUSO had 4.50% asset growth, 6.35% loan growth, and 0.82% member growth. “Although you cannot [infer] cause and effect from these data, the message is clear,” Davis said. “Credit unions with investments in multi-owned CUSOs perform better than credit unions that do not participate in multi-owned CUSOs. Credit union collaborations also provide additional resource and expertise, spread risk and capital investment in business ventures, and ultimately drive more value back to credit union members.”
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