Create a Credit Union

Creating a credit union is not as difficult as one would think. Neither is it a snap! Instead, it’s a concentrated effort by a group of like-minded individuals who have the ambition to control their financial destinies and the strong desire to forge ahead until they make it a reality. Credit unions continue to be premier financial institutions in the country and it’s because the people who use the institution are also the people who own it. To share this common bond with their peers is the foundation of the entrepreneurial spirit imperative to its success. Credit unions are formed by members to serve members, each of them entitled to have a voice in the products they provide and the service quality they expect.

Credit unions are not-for-profit, financial cooperatives, operating under Federal or State charters. Decisions made in the formative stages of these financial institutions are the cornerstone of a successful credit union. Create A Credit Union exists solely to support the emergent credit union at every stage. Backed by CU*Answers, a trusted name in Credit Union Service Organizations, and premier core technology provider since 1970, is the source of expertise and guidance throughout the entire development process.

CU*Answers Can Help Discover the Possible!

Have dreams of starting your own credit union? CU*Answers has embarked on many missions through the years to prepare and serve start-up credit unions as they build a presence in their communities. Establishing a credit union presents challenges – as with the formation of any other business. A major challenge that credit unions face today is being viewed as relevant by potential members for being their financial institution of choice. As industry peers and partners, we must determine cooperative ways to assist new, start-up credit union ventures, and help facilitate their early efforts.

CU*Answers believes this philosophy is a core principal to which each of us must commit ourselves, especially if we hope to see our industry numbers and overall visibility to potential members grow. After all, each of us has a significant, vested interest in motivating our industry to achieve greater success.

CU*Answers Makes it Easy for You

CU*Answers has crafted a program unlike any other that is specifically targeted for new, start-up credit unions! CU*Answers is showing you how financially committed they are to assisting every de novo effort, by providing FREE data processing services for the first initial 2-year period! In addition to offering this great deal, CU*Answers is openly challenging other industry vendors to “step up to the plate” and design a similar plan for financially assisting these start-up ventures.

We know it can be a very difficult, time consuming and frustrating experience to start a new credit union. That’s why we’re here to help! Too many times, the planning process becomes exasperating, and the new opportunity simply fades away before it ever gets off the ground, or even worse, shifts to becoming a small community bank option instead. However, if a business plan is able to be developed by incorporating the financial backing and clout of a proven
industry CUSO partner, the chances for overall success are considerably increased. CU*Answers fosters the development of de novo credit unions through innovative use of proven methodologies in their arsenal of practical tools and relevant services.

What’s the Plan?

  • CU*Answers will provide data processing services to pre-qualified credit unions gratis for an initial 2-year period of a standard 5-year agreement term.
    • The credit union will only be responsible for certain one-time fees (i.e. hardware – at cost), and select pass thru fees from 3rd party vendors as required.
  • CU*Answers will provide a robust CU*BASE feature set. These services include:
    • The full CU*BASE product suiteOnline Banking
    • Mobile Web e-Statements
    • Audio Response
    • ATM/Debit card Processing
    • Imaging capabilities and more
    • Options such as SRS Bookkeeping as well as various collections
    • Marketing and call center services

    Each of these will be determined on a case by case basis and as permitted by the regulator

  • The credit union will be able to atake full advantage of Xtend Branch Sharing capabilities and the cuasterisk.com network for building new alliances.

With CU*Answers you’ll also have access to:

  • Auditing and compliance with CU*Answers AuditLink
  • A full year of automated marketing campaigns with CU*Answers Marketing
  • Website development and hosting with CU*Answers Web Services
  • Lending services from CU*Answers Lender*VP
  • Network and workstation support with CU*Answers Network Services
  • Online bill pay and credit cards with CU*Answers SettleMINT EFT
  • e-Document systems and consulting with CU*Answers Imaging Solutions
  • Call center services with Xtend

Charges may apply for additional services and consulting

After the Second Year

  • Following this initial 2-year period, CU*Answers will work closely with the credit union to re-evaluate their then current membership/ financial status, business plan, and work together to determine a fee strategy for the next 3-year period.
  • Should the start-up credit union wish to merge with another credit union, it will be provided 2 options:
    1. Merge with a CU*Answers processed credit union, in which case there would be no early contract termination/ deconversion fees.
    2. Merge with a non-CU*BASE processed credit union, in which case the credit union would agree to pay the standard early contract
      termination fee as calculated by 50% of the initial 5-year term, and as based upon the then current Pricing Guide. In other words, if a credit union’s monthly recurring fee would be calculated as $3,500.00 (assuming standard billing), and it decided following an initial 2-year period to merge with another non-CU*BASE credit union, the cancellation fee would be calculated: $3,500.00 (fee at time of merge decision) x 60 months (initial contract term) x 50% (discounted rate) = $105,000. CU is responsible for all other costs as related to the CU*BASE deconversion, 3rd party vendors or other applicable fees. Should the de novo credit union become insolvent at any point during this initial 5-year term, no CU*Answers early termination fees would apply

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