To help those credit unions that want to make retail investment services a core component of their product and service lineup, Xtend Inc. and CUSO Financial Services LP have come together to make it happen.
After having discussions about what collaboration between the two companies could mean for the members of the 165 credit unions that Xtend serves, both CUSOs came up with a strategic marketing agreement to bring investment services to members of Xtend’s mid-market customer-owners, according to Xtend.
The San Diego-based CUSO Financial is a broker-dealer and investment adviser providing investment and insurance services to more than 150 credit unions nationwide.
Located in Grand Rapids, Mich., Xtend provides managerial, operational, marketing, technical planning and consulting services to its credit union client and owners.
“Many mid-market credit unions have been unable to call member investment services a core competency compared to their larger industry peers. For many, it was simply a lack of investable assets or resource limitations,” said Xtend President Scott Collins.
While some had dabbled with in-house or partnered programs that had moderate or little success, Collins said there is still an opportunity for credit unions to fill a void.
“We remained convinced that offering this service to members would be a must-have for credit unions to stay relevant in tomorrow’s marketplace,” Collins said.
Collins said Xtend’s data processing CUSO partner, CU*Answers Inc., is also helping to drive this new initiative through integration with its CU*BASE core application suite.
“We believe this brings a combination of core software, member awareness machinery and professional investment brokers to the mid-market in a way that it has not been done before,” Collins said. “It will be fun to watch these programs gain traction with members.”