He had hoped for more business – but a year into the life of Bismarck, N.D., CUSO ProDraft Services vice president Doug Wolf (onetime CEO of Midwest Corporate, now closed) told Credit Union Times in an interview, “we are doing OK.”
Created to provide a range of correspondent services traditionally provided by corporate credit unions, ProDraft – which uses Cincinnati-based Fifth Third Bank to do much of its processing – does not require its users to put up capital and therein, said Wolf, lies the appeal.
Many credit unions that had been burned in the corporate catastrophes of the past few years have shied away making new capital commitments.
Even so, ProDraft has had slow going. “We had hoped to have 100 customers by now. We have around 50,” said Wolf.
He attributed some of the slowness to a “wait and see attitude” among credit unions - especially in the West as they sought clarity about Western Bridge’s future.
He elaborated that in addition to a concentration of North Dakota credit unions, ProDraft – which won status as a preferred vendor per NAFCU – now has customers in Oregon, Utah, Montana, Connecticut and Minnesota.
Asked to forecast ProDraft’s size a year from now, Wolf said, “We will be at least at 65 customers. We will be happy there. And we may be over 75.”
One way or the other, added Wolf, ProDraft is demonstrating one fact: “There are alternatives to traditional corporates.”