Regulatory compliance, invoicing and other areas that may have been under the priority radar a few years ago have aggressively come to the forefront at many credit unions.
Keeping up with the treadmill of regulations led to the creation of several CUSOs in 2012 to help credit unions that didn’t have the financial and staffing resources to remain compliant. With no letup in sight, the industry could see more launches of compliance CUSOs in 2013.
More 2013 Watch
- Dec. 28, 2012 Marketing in the Year Ahead
- Dec. 27, 2012 Gen Y in the Year Ahead
- Dec. 27, 2012 Member Investments in the Year Ahead
- Dec. 26, 2012 Member Business Lending in the Year Ahead
- Dec. 26, 2012 Human Resources in the Year Ahead
- Dec. 21, 2012 Credit Union Taxation in the Year Ahead
- Dec. 20, 2012 NCUA Board in the Year Ahead
- Dec. 19, 2012 Cards in the Year Ahead
- Dec. 19, 2012 Mortgage Lending in the Year Ahead
- Dec. 18, 2012 Low Income Service in the Year Ahead
- Dec. 18, 2012 Bank Conversions in the Year Ahead
- Dec. 17, 2012 Student Lending in the Year Ahead
- Dec. 17, 2012 Auto Lending in the Year Ahead
The same may be true for services that help small businesses manage cash flow such as invoicing arrangements. Existing CUSOs may also offer an extended line of business services that include mobile banking and marketing tailored around social media.
Disaster recovery CUSOs can expect to see a growth in clients based on what is predicted to be an active hurricane season in 2013.
Meanwhile, it remains to be seen whether the NCUA’s controversial CUSO rule amendment will ever move forward. In September, NCUA Chairman Debbie Matz said the issue has been shelved for now.
The NCUA had proposed a rule that would require all CUSOs to file financial reports directly with NCUA and the appropriate state supervisory authority. The regulator also proposed making additional parts of the CUSO rule applicable to federally insured state-chartered credit unions as well as federal credit unions.
The NCUA Board said it was also concerned that less-than-adequately capitalized federally insured state credit unions posed serious risk to their members and the NCUSIF when investing money into failing CUSOs. To address the concern, the regulator had proposed limiting these FISCUs’ aggregate cash outlays to a CUSO, consistent with state laws.