Here are some questions to ask a prospective CUSO partner during the due diligence phase:

How long have you been offering this service? It's important to dig into the CUSO's relevant background and experience, ensuring alignment with your specific needs. "I really like finding out about the history of the organization," Anderson said. "Why were they created? What kind of expertise do they have? And how have they been growing through the years?"
What challenges has your CUSO faced, and how have you dealt with them? During her initial round of questions, Worrell asks about issues the CUSO may have faced in the past, and how it has maintained its service levels in dealing with them. "I also like to ask about the current or future risks they may see in their industry or service areas," Worrell said. "What are their plans to mitigate these threats?"
Are your strategic goals aligned with ours? It is critically important for the CUSO and credit union to be on the same page in terms of strategy, goals and philosophy. In the case of a business lending CUSO, for instance, will it underwrite loans in line with your commercial loan policy, or will it take a "one-size-fits-all" approach, relying on a centralized standard policy? "I want to know how the CUSO makes money, and what its motivations are," Anderson said. "What are the goals of the organization?"
How many clients have you lost? Why did they leave? This line of questioning can be very telling. By asking if the CUSO has lost any key customers recently, you may uncover some hidden service issues that have yet to bubble to the surface. "If you see a loss or decline in the customer base, I would be concerned," Worrell said. "Some CUSOs are afraid to discuss this, while others are very up front and explain who they lost and why."

It is important to take the time to conduct comprehensive due diligence on any new CUSO partner, just as you would with any new vendor relationship. Reaching out to current references is vital.

Instant Insights /

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