CUSO Participation Far From Saturated Post Incidental Powers, Multi-Owned CUSOs Are Key

SAN DIEGO — This Sept. 5 will mark the sixth anniversary of the revision of Part 721 of the Code of Federal Regulations, which provided more latitude for credit unions to legally engage directly in activities that had previously been prohibited.

NCUA’s passage of incidental powers on Sept. 5, 2001 meant credit unions could earn additional income through more products and services and earn income on a range of incidental powers activities ranging from financial counseling services, certification services to debt cancellation products and trustee and custodial services. Prior to incidental powers, CUSOs were formed to facilitate many of these services and while the regulatory landscape has changed their position in the industry, collaboration is still touted by advocates who remain convinced that collaboration is the key to staying relevant and competitive.