As someone who has worked with CUSOs for the past thirty years, I am often asked by credit union CEO’s what are the “hot” services for CUSOs? “I need more revenue streams and I need to contain my operating costs. What works?”
Revenue streams come in two flavors, fee revenue and interest revenue. Looking first at fee income, investment services can provide significant returns. After paying the financial advisors and costs, credit unions can earn between 30%- 45% of the commissions shared with the credit union which can be 80% to 92% of the total commissions. There are many credit unions that have affiliated broker/dealer relationships that generate over a million dollars per year in commission income (note that this model is direct with the credit union and not through a CUSO). The amount of capital needed to start up and support an affiliated investment services program is a pittance comparted to the capital needed to source, underwrite, fund, service and reserve for loans.… Read more
NACUSO was very excited to hear of the acquisition of OnApproach by our Platinum Partner Trellance. NACUSO CEO Jack Antonini sat down with Tom Davis and Paul Ablack last week to learn more about this amazing partnership.
JACK: Tom and Paul, Congratulations. This makes so much sense since it allows you to continue to bring significant benefits to credit unions where scale is truly beneficial (i.e., understanding data uses, trends, and combining more data for the benefit of all users), just as you did with payment cards! Brilliant move, and keeping Paul Ablack to continue product development of M360, with Trellance’s resources, should be a very big positive for the industry!
TOM: Thank you, Jack, we appreciate the partnership with NACUSO and the support you’ve given us over the years.
JACK: I know these deals don’t just happen and take a lot of work. What was behind the decision to move toward data gathering and analytics, that led to the talks with OnApproach?… Read more
Constellation Digital Partners, LLC is pleased to announce the groundbreaking release of Boötes, the third major development milestone for Constellation following the launch of Aquarius and Aquarius 1.1 earlier this year.
The Boötes release is paramount as it enables the first three core connections on the Constellation platform, and takes the developer experience to a new level by providing access to core data that allows developers to build services for authenticated users. Additional core connections will be coming soon.
“A major road block has been removed for developers with the release of Boötes,” said Developer Evangelist Daryl Thornton. “Fintech service providers can now scale their solutions across three core banking platforms by integrating with one solution. The Boötes release lays the ground work needed for developers to authenticate members and access member data on the Constellation platform.”
With Boötes, fintech service providers can develop a single instance of a service that can communicate with multiple credit union core systems.… Read more
Combines dark web intelligence with real-time authorization to prevent fraud before it occurs
PSCU – the nation’s premier payments CUSO – has announced another tool in its fraud-fighting arsenal with the addition of First Data’s FirstSenseä. By leveraging threat intelligence and analytics garnered from the dark web, FirstSense enables PSCU Owners to identify at-risk payment cards and prevent fraud before it happens.
FirstSense employs a variety of proprietary data collection methods and advanced analytical tools to identify accounts at risk throughout the fraud lifecycle. Integrated with First Data’s DefenseEdgeTM fraud decisioning solution, FirstSense enables financial institutions to use indicators of risk exposure to create rules and strategies that allow institutions the ability to prevent potential fraudulent transactions in real time.… Read more
Trellance, the Tampa-based CUSO that is on a mission to deliver end-to-end products and services to realize growth and profitability for credit unions, announced its acquisition of IronSafe, an Illinois-based software company that offers data analytics. President & CEO of Trellance, Tom Davis, said, “We recognize the importance of data analytics in providing insights to drive results today and into the future. With this acquisition, Trellance will give credit unions access to an integral resource to navigate the financial landscape. We will put the power in their hands to unlock data that was not available to them.”
IronSafe offers data analytics with a unique extraction capability to its customers and some of its functionalities are already in use by over 2,300 credit unions. Trellance will benefit from the expertise of the IronSafe staff and powerful dashboards that will help credit unions to integrate data from different sources and arm them with insights that will enhance how they serve their members.… Read more