New this Year! Partner Connection Sessions
We are known for the Next Big Idea Competition, so why not capture all of that creative energy and spirit by bringing people together for a facilitated session to generate some real opportunities to collaborate with other CUSOs and credit unions? So this year, we present Partner Connection Sessions! NACUSO will hold two Partner Connection Sessions during the 2016 NACUSO Network Conference to give attendees an opportunity to connect with like-minded credit unions and CUSOs to develop collaboration opportunities that generate net income, achieve scale, share/mitigate risk and/or take advantage of new opportunities. The challenge for credit union leaders who want to explore CUSOs and partnerships seems to be twofold: how to find and connect with partners who have similar challenges, needs and wants; and, how to evaluate their potential collaborations and develop the data and business plans and get them in front of the decision makers, in a quick enough process, so they know what the advantages are, the timeline and what they will need to invest.
Goals of the Partner Connection Sessions
- Invigorate the process around collaboration by building up a real excitement about ideas and performance and how utilizing CUSOs to implement collaborations is a unique competitive advantage that credit unions enjoy.
- Get the right people at the sessions who want to investigate the collaborative alternatives and start the conversations.
- Start the partnering process. Through a facilitated discussion, move the potential partners to identify their collaborative goals and agree to further discussions or an assessment process.
Background of Concept for the Partner Connection Sessions
There is a strong history of collaboration within CUs. CUs have always been most successful through collaboration, using the structure of partnerships to innovate, create scale, manage risk, negotiate savings, create political strength, etc. It is in our DNA and part of our history. There are many successful models in the market, COOP, shared branching, OTS, S3, PSCU, business servicing CUSOs and NACUSO has been on the forefront of supporting those models.
Today there is more of a need than ever for partnerships in order to compete against our global banking competitors, mega regional banks and well financed Fin Tech competitors. These competitors have mass scale and are eroding some of our fundamental advantages of price (not paying taxes) and service (members own us not outside stock holders) by using technology to create a new paradigm of service through digitization. In addition, the banking business has gone through 35 years of mass consolidation often for the singular purpose of creating scale and reducing transactional cost. CUs are experiencing the same pressures and you can see how the largest CUs are out pacing the performance of the entire CU market because of their scale and pricing advantages. We operate in a retail commoditized market where scale always matters, and while we have real competitive advantages, some of them are being eroded by the lack of scale. We need to go back to our core strengths and find our collaborative opportunities to compete.
CUs basic structure is collaborative – our members own us. Yet we find it hard to get together even given the need and our successful history. While collaboration and the formation of CUSOs make absolute business sense, during these changing times it is harder than ever to get CUs to come together, especially locally. The natural partnerships that have occurred over the years with the local CU in marketing, branches, ATMs, etc. are now difficult as the older partners are now viewed as competitors as fields of membership have been modernized to help us compete and we find ourselves competing against other credit unions in local markets. The other issue is that forming partnerships is hard. They require trust, openness, shared values and vision. Most CUs have the fundamentals such as shared vision, history of sharing and common values in place but get sidetracked by control issues and internal politics. It seems that in order to get more collaboration / CUSOs, it is now more about the process than the underlying need, which most potential partners readily admit exists.
These new Partner Connection Sessions will address how to develop the data and business plans and get them in front of the decision makers, in a quick enough process, so they know what the advantages are, timeline and what they will need to invest. The key here is we will we go beyond concept to hard facts and almost unrelenting data. We think the savings are substantial but putting it into real and almost indisputable financials will help create the momentum. We have an assessment process that will do just that.
Partner Connection Facilitated Topics
HR/Shared Administrative Services – This can include shared HR, accounting, internal audits, bookkeeping, payroll, health benefits, HRIS, etc.
IT/Core Processor Services – This includes (1) providing core IT services that are proprietary to the CUSO, (2) providing core IT services that are not proprietary to the CUSO (as a service bureau) and (3) providing the credit union in-house IT expertise to work with the core provider. Reducing the expense of running core systems while increasing skill sets and be faster to market.
Compliance/Legal – Sharing of the legal and regulatory costs, improving the skill sets in the management of these areas.
Business Lending – Discussion on small business and commercial lending CUSO opportunities, making business loans or assisting credit unions to originate and service business loans.
Mortgage Lending – Making mortgage loans or assisting credit unions to originate and service mortgage loans… creating scale in the mortgage operations.
Marketplace Lending – Digitized lending platforms, creating a credit union owned lending platform that produces whole loans to CUs while utilizing the digitized lending platforms that are similar to Prosper, LendingClub, OnDeck and Rocket Mortgage. Creating and using digitized lending platforms that will successfully help credit unions compete with the FinTech lenders.
Digital Banking – Developing a new concept in home banking that focuses on user experience and analytics.
Data Analytics – Collecting, storing and analyzing large scale data for credit unions to help them better serve their members.
Payment Systems – Mobile payments and strategies to maintain a meaningful role in the payment systems.
Investment Services – Add value to your CU members and non-interest income to the CU bottom line by focusing on investments and insurance.
Other – This is a gathering of those interested in a service not on the above list. Identify a service or subject matter not on the list and see if there is interest from others; could be collections, marketing, vendor management, other types of lending, debit or credit card processing, real estate brokerage, trust services or payroll processing.
Partner Connection Facilitators
We have recruited the best of the best in the CUSO world to facilitate these exciting sessions with experts who have already done it. We will arm participants with the tools to prototype and test their business in the credit union marketplace. Our facilitators will have experience in each of the topics/challenges to help share lessons learned on their journey to collaborative solutions. Check our website as we continue to update the Partner Connection sessions with additional topics and facilitators. Don’t miss these exciting new sessions which will be held on April 5th & 6th at the 2016 NACUSO Network Conference at the Encore Resort in Las Vegas.
Kirk is CEO of Edge Consultancy, and is widely considered a breakthrough financial performer with an unmatched track record of growing credit unions and providing leadership and direction in the non-profit community. Mr. Kordeleski is a relentless bottom-line driver respected industry-wide for leading Bethpage Federal Credit Union to become the largest credit union in the Northeastern United States. Kordeleski has a history of working with credit unions to over come their reluctance to “lose control” and see the value of collaboration. His collaborations saved millions of dollars annually for the owners of OTS and S3 CUSOs.
Vic is President and CEO of Pantea Consulting, Manager of Marketplace Alliances at CU*Answers and former CEO of Member Gateways, the highly successful CUSO that formed several other very successful CUSOs for their 24 credit union owners.
Guy has provided strategic planning and legal consultation services to hundreds of credit unions and credit union service organizations nationwide. Since 1987, he has served as General Counsel to NACUSO where he also serves as liaison with the National Credit Union Administration.
Vim is a Management Consultant of Edge Consultancy and a Senior Executive with 30 years of global business experience, having worked in Europe, Asia and the USA. A former senior partner of EY, Vim has a successful track record in improving business performance through re-engineering, technology and leadership change management.
Mike is CEO of Open Technology Solutions, a multi-credit union CUSO owned by Bellco CU, Bethpage FCU, and SECU of Maryland. Prior to OTS, Mike served as Chief Information Officer for Bellco CU and as Interim President and COO for a financial services solution provider offering home banking and electronic bill payment products. Mike also served as a senior practitioner with Deloitte Consulting for ten years, managing business and technology projects for financial services companies.
Mike is CEO of S3 Shared Service Solutions and has 20+ years experience in Banking and Financial Services with a proven track record of leading groups and companies in achieving operational, sales and corporate goals. In his S3 role, Mike helped plan, design, build and ultimately operate CUSO from the ground up to provide back-office banking functionality to its 750,000+ members.
Julie Wooding is a Principal Consultant in the Scores group, and has been with FICO since 1993. She works with larger lenders in the U.S. and Canada to help them understand, use, and evaluate our FICO® Score solutions. In her 22+ years at FICO, Julie also served as a strategy consultant, a role in which she worked with clients to develop, evaluate, and continuously improve their account management strategies.