A CUSO, or Credit Union Service Organization, is a separate legal entity that is owned and controlled by one or more credit unions. CUSOs are created to provide services to credit union members that the credit union may not be able to provide itself. CUSOs can provide a wide range of services to credit unions, such as investment services, real estate services, insurance services, and more. They can also provide services to credit union members such as mortgage lending, investment advice, and wealth management services.
CUSOs are created to help credit unions expand their services to members, increase revenue, and improve operational efficiency. They can also help credit unions to reduce costs by sharing expenses and resources with other credit unions.
CUSOs are regulated by the National Credit Union Administration (NCUA) and are subject to the same regulations and examinations as credit unions. CUSOs are also required to comply with state and federal laws and regulations that apply to the services they provide.
In summary, CUSOs are created to provide specialized services to credit unions and their members that the credit union cannot provide by itself, and are usually created to expand services, increase revenue and improve operational efficiency.
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