ARVADA, Colo. — Small credit unions in Colorado and Wyoming can now cut technology and personnel costs in a major way thanks to a program leveraging their buying power through investment in a CUSO run by the Credit Union Association of Colorado.
"The human resources program operated by the CUSO has already cut our insurance costs by about 25% and saved us the equivalent of a full-time salaried employee," boasted Horacio Peralta, president/CEO of the $17 million B.C.S. Community Credit Union of Wheat Ridge. Peralta, who also is chairman of the CUSO known as Credit Union Resource Group, said the program organized two years ago has been gaining popularity, with 21 Colorado and Wyoming CUs now as equity owner/investors.
In addition, there are 17 of the state's largest CUs providing seed money to pay for operating expenses. "CURG has been bringing on new credit unions at the rate of about one every other month," with the 22nd expected to sign up next week, said Daniel Burk, chief operating officer of CURG, who also is vice president of business and product development at the Colorado association.
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To prospective vendors who provide the low-cost products and services, the association frames CURG as a CU maintaining the combined 21 CUs "have 180 employees serving nearly 70,000 members, ranking it as the seventh largest area credit union by assets."
CURG, said Burk, is extraordinarily useful as "a unifying force" in bringing together CUs from all parts of the state, particularly those in rural mountain areas that ordinarily would not gain access to products and services made available on a more economical scale.
In organizing CURG, the association stresses that the participating CUs are autonomous, also assuaging them of fears they are being "sponsored" by large CUs. "We want them to know that this is not a case of the big guy telling them what to do," said Burk.
Peralta said CURG has been particularly beneficial in "retaining talent since previously we never had access to all the full benefits we can now provide to our six employees."
Similarly, the $17 million Great American Community Credit Union in Grand Junction said since joining CURG in June 2005 it has vastly improved its tech offerings, providing a broader range of home equity products and business accounts.
"These were things I always wanted to do but couldn't until we took advantage of what was offered through CURG," said Alan Shanks, president/CEO.
CURG "has changed the way we do business," said Shank. Great American has already saved $30,000 in upfront costs and "as a small credit union, CURG has allowed us to compete in an increasingly competitive marketplace."
Indeed, the Grand Junction CU can now relay to members that it is offering convenience and services "that a large financial institution would, like online banking, electronic loan applications and shared branching." CURG has also meant "we have been able to double our home equity offerings."
Under the CURG structure, Credit Union Strategic Partners serves as one of the equity members. CUSP is the processing subsidiary for both the Colorado and Wyoming CU associations.
Burk said CURG is intent on staying focused in those markets right now in order to provide the best quality services possible. However, CURG's mission is to help all credit unions survive and thrive, so if CUs in other states asked for help, CURG would find a way to get them the services and support they need, he said. –[email protected]
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