CUSO continues to help Owner credit unions succeed and prosper despite a year filled with unprecedented challenges
PSCU, the nation’s premier payments credit union service organization (CUSO), has announced a record patronage dividend for the 2020 fiscal year of $37.4 million, with 30% being distributed in cash. As part of its commitment to helping Owner credit unions succeed and prosper, PSCU’s cash distribution to Owners this year is $20.5 million, including $6.7 million in capital credits and $2.6 million in revolving funds, representing the largest cash payout to Owners in the history of the cooperative. Since its founding, PSCU has distributed more than $577.6 million in patronage dividends, with 51% paid in cash.
“In a year in which the credit union philosophy of ‘people helping people’ has taken on even deeper meaning, our commitment to the success of our Owner credit unions and their members has not wavered. Together, we have partnered to meet these challenges head-on and have become an even stronger cooperative,” said Chuck Fagan, president and CEO of PSCU. “As we previously reported, PSCU completed our 2020 fiscal year with excellent top- and bottom-line growth. As we build on our strong momentum, we continue to invest a significant portion of our top-line revenue in capital expenditures – in addition to our $100 million three-year investment – to fuel future investments, all while providing record patronage dividends to our Owners.”
Highlights from the past fiscal year include:
- First-year execution of a three-year, $100 million investment announced at the beginning of fiscal year 2020 – the largest ever approved by PSCU’s Board of Directors. This investment has fueled multiple initiatives, including:
- Continued growth of Lumin Digital, PSCU’s cloud-native digital banking platform, with nine credit unions and more than 300,000 users currently on the platform, eight more implementations in process and a strong pipeline in place
- Commitment to improving credit union onboarding, solution delivery and program enhancement efficiencies, as well as continued growth in strategic solution offerings including digital, risk management and data analytics offerings
- Deployment of additional robotic process automation (RPA) and machine learning capabilities to improve efficiency and speed to deliver
- Exponential growth in contactless, with PSCU slated to produce more than 6.8 million new contactless plastics – the most significant volume in the credit union space – and deliver them to more than 100 credit unions to support natural and mass reissuance strategies in the current calendar year
- Continued investment in cutting-edge data, network and cybersecurity infrastructure tools, including Linked Analysis, PSCU’s proprietary approach to intercepting and predicting fraud; the CUSO’s best-in-class security practices saved Owners over $400 million in potential fraud dollars in fiscal year 2020
- Expansion of collections capabilities, tools and resources in anticipation of growth in delinquencies in the post-pandemic environment
- Onboarding of more than 900 Jack Henry & Associates (JHA) financial institutions, representing over 15 million accounts, fueling additional investment opportunities to benefit PSCU Owners
- The acquisition of Primax, adding scale to PSCU’s core payments business and additional expertise in the small and medium-sized business card market
- Continued focus on building and leveraging a diverse, agile and digital workforce through both dedicated internal initiatives and industry partnerships.
Owners benefit from PSCU’s investments by sharing in the financial returns that are distributed through the company’s annual dividend. PSCU’s cooperative structure enables distribution of the company’s earnings to its Owner credit unions as tax-free patronage dividends. The origin of PSCU’s model is collaboration and scale, and the company has leveraged its influence on behalf of credit unions and their members for more than 40 years.
The Annual Meeting of PSCU’s Owner credit unions will be held virtually in 2021, with details forthcoming.
PSCU, the nation’s premier payments CUSO, supports the success of 1,500 credit unions representing more than 3.8 billion transactions annually. Committed to service excellence and focused on innovation, PSCU’s payment processing, risk management, data and analytics, loyalty programs, digital banking, marketing, strategic consulting and mobile platforms help deliver possibilities and seamless member experiences. Comprehensive, 24/7/365 member support is provided by contact centers located throughout the United States. The origin of PSCU’s model is collaboration and scale, and the company has leveraged its influence on behalf of credit unions and their members for more than 40 years. Today, PSCU provides an end-to-end, competitive advantage that enables credit unions to securely grow and meet evolving consumer demands. For more information, visit pscu.com.