NACUSO continues our core 20+ year mission of advocating for a regulatory environment that enables credit unions, CUSOs, and FinTechs to thrive together.
Whats Hot: Vendor Authority
NACUSO Opposes NCUA’s Bid for Expanded Authority over Credit Union Vendors
The National Association of Credit Union Service Organizations (NACUSO) has expressed concerns about the National Credit Union Administration’s (NCUA) request for expanded regulatory authority over all credit union vendors. NACUSO argues that this expansion is unnecessary, costly, and would burden both the NCUA and credit unions.
Key Points of NACUSO’s Position:
1. NCUA Lacks Expertise: NACUSO believes that NCUA lacks the expertise to regulate and examine the diverse range of businesses that interact with credit unions. Many of these vendors, including CUSOs, offer products and services already subject to extensive regulation by other agencies.
2. Unnecessary Resource Drain: Expanding NCUA’s authority would require a significant increase in agency resources, including staffing and budget. The average credit union works with over 100 vendors, and NCUA would need to examine thousands of businesses nationwide.
3. Existing Authority is Sufficient: NACUSO highlights that NCUA already has “review” authority over CUSOs through a rule in effect since 1998. This rule allows NCUA access to CUSO books and records, and NCUA can compel changes through a CUSO’s owner credit unions.
4. Cybersecurity Concerns Can Be Addressed Differently: While NCUA cites cybersecurity as a primary concern, NACUSO suggests that NCUA could leverage its affiliation with the Federal Financial Institutions Examination Council (FFIEC) to utilize examinations conducted by other agencies, such as the FDIC and OCC.
5. Unjustified Expansion: NACUSO argues that NCUA’s request for expanded authority is an overreach, especially since existing mechanisms have proven effective in overseeing credit union vendors.
<Click here to read NACUSO’s full position on vendor authority>
Message From the CEO
Advocating for the Future of Credit Unions, CUSOs, and Fintechs
As CEO of NACUSO, I believe that advocacy is more than a responsibility—it’s a mission to amplify the voices of credit unions, CUSOs, and FinTech innovators. We understand that the future of our industry depends on strategic partnerships, cutting-edge technology, and a commitment to collaboration. That’s why we stand at the forefront of advocacy, representing the interests of not only credit unions but also the CUSOs and FinTechs that drive innovation.
NACUSO is dedicated to ensuring that regulatory policies and initiatives support growth, enable innovation, and foster collaboration across the financial ecosystem. We are committed to breaking down barriers and empowering our members to thrive in an ever-evolving landscape.
Whether you’re leading a credit union, building a CUSO, or developing FinTech solutions, we are your voice. Join us as we champion the future of financial services, ensuring that together, we’re reimagining what’s possible for credit unions, their partners, and the communities they serve.
Ronaldo Hardy
CEO, NACUSO