MEMBERS Trust Co. Laying The Groundwork to Offer Trust Services to Small CUs
MADISON, Wis. - Nearly four months after MEMBERS Trust Co.'s launch as the industry's first credit union-owned, nationally-chartered trust firm, discussions are underway to extend trust services to smaller credit unions that may lack the funding to start their own operation. Through MEMBERS Trust, credit unions can now choose the agency office option, which requires a trust officer on site or the representative office, which uses the expertise of specially trained representatives to consult and make recommendations for trust services. A third option - a consortium office - would have credit unions with less than $100 million in assets band together in a shared network arrangement to have a trust services available for all members. "We've always planned for this type of arrangement," said Francis Quinn, MEMBERS Trust senior vice president of business development and investments. "In order to cover the overhead costs (of trust services), you need a certain amount of assets under management. This option provides an outlet for credit unions that see the value of trust services and the creation of a shared network or CUSO." Quinn said MEMBERS Trust is currently in discussions with interested parties but a rollout isn't expected this year.