California, Nevada CUs' Feedback Helps Form New CUSO
Saddled with pressures to reduce operating expenses, California and Nevada credit unions had been seeking an outlet to help minimize costs through a collaborative network.
That was 2008, when the California and Nevada Credit Union Leagues conducted a member survey and received an overwhelming response for greater cooperation and collaboration, said Lucy Ito, league senior vice president of credit union growth and development. After the creation of an ad hoc committee to explore solutions, 10 credit unions came together to launch CURoots Cooperative, a CUSO that will provide back-office services. Ito will serve as CEO of the new entity.
"The model is patterned along the same lines as natural person credit unions that give member-consumers the best value by reducing costs and maximizing value and by intermediating between members' financial shortages and excess capacities," Ito said.
While CURoots, like a credit union, will need to retain earnings to further enhance services and grow the business, Ito said its primary objective will be to realize savings for credit unions and to intermediate between capacity shortages and capacity excesses.