LAS VEGAS — CUSOs that offer mobile banking and student lendingservices are expected to be among the most sought after by creditunions.

Jay Johnson, executive vice president at Callahan &Associates, discussed how credit unions that have an investment ina CUSO have an edge over those that do not at a sessionThursday during NACUSO's annual conference in Las Vegas.

Johnson said there are about 700 CUSOs in the industry, with 180of them being multi-owned and the rest wholly owned. Financialservices and investments make up the bulk of the offerings frommulti-owned CUSOs while technology services are among the dominantones coming from wholly owned CUSOs.

Johnson said those credit unions that are active in the CUSOnetwork post higher member growth, have higer productivity and astronger lending profile. The percentage of members with checkingaccounts at credit unions that have relationships at CUSOsindicated that their credit unions are their primary financialinstitution. Credit unions that use CUSOs have more accounts permember, Johnson pointed out.

In 2010, credit unions invested $2 billion in CUSOs, accordingto Callahan figures. Nearly 93% of of credit unions that useCUSOs have assets over the $1 billion mark. Nearly 70% in the $100million to $250 million range work with CUSOs.

Johnson pointed to several CUSOs that have made inroads inproviding solutions to credit unions that have in turn led togrowth for both entities. Those that offer services such asinformation technology, mobile banking and student lending are alsopoised for growth, he said.