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How to partner with CUSOs

The credit unions that will grow and thrive in the long-term aren't the ones with the biggest balance sheets. They're the ones putting the cooperative principles into action; collaborating for scale. CUSOs are the smartest way to do that.

This webinar, originally developed for Connecticut’s Credit Unions, features a discussion on how credit unions can transition from traditional, transactional vendor relationships to strategic partnerships with Credit Union Service Organizations (CUSOs).

Key themes and takeaways from the session include:

Strategic partnerships vs. vendors:

A true CUSO partnership involves co-creation rather than just consuming a finished product. Strategic partners work collaboratively to solve specific credit union problems, pivot alongside their partners, and share long-term goals.

Common pitfalls:

  • Lack of internal clarity regarding desired outcomes and success metrics.
  • Treating early-stage CUSOs like mature, legacy vendors, which overlooks the need for patience and active guidance.
  • Failing to prepare the credit union’s internal culture, risk management, and IT frameworks to support new technology.

Building vs. buying:

While some credit unions may consider building solutions internally, panelists suggested that partnering through a CUSO is often more efficient for accessing innovation. A key consideration is the credit union’s capacity to maintain the solution once it is built.

Collaboration and networking:

The credit union space is uniquely collaborative. Panelists emphasized that credit unions should not work in isolation; they recommended reaching out to peers and organizations like the National Association of Credit Union Service Organizations (NACUSO) to share knowledge, capital risk, and due diligence efforts.

Future outlook:

As technology continues to evolve, CUSOs are increasingly acting as “scouts” that help credit unions source and integrate new innovations, such as AI, that might otherwise be unavailable to them.

Advice for smaller credit unions:

  • Start small with targeted pilots to gain experience and success before expanding.
  • Leverage industry resources and established networks to bridge gaps in experience or regulatory knowledge.
  • Focus on the member’s needs and how a solution can provide better value or help capture a greater share of wallet.
About the author
NACUSO
The National Association of Credit Union Service Organizations (NACUSO) helps credit unions and CUSOs collaborate faster, find the right partners, and protect the model that makes shared investment possible. The organization’s purpose is to be the leader of innovation, collaboration and advocacy for the credit union system.