Diversify or Specialize? Both Work for CUSOs
CUSOs trying to choose between a strategy of diversification or specialization may find there is no wrong answer.
Case in point: two CUSOs that took different approaches and have both enjoyed considerable growth.
“If I can make it easier for a credit union to bring their credit card portfolio on-line because I can do their back office daily work, then that’s a win-win,” he said. “If I can drive more loan activity because I’ve got folks that make 20,000 outbound calls a month to create member awareness, that’s a win-win. A lot of the credit unions might not be open on Saturday, but the call center is open on Saturday.”
Another growing CUSO is Cooperative Business Services in Cincinnati, Ohio. While Xtend offers a range of services, CBS instead focuses on business loans.