Need for More Regulatory Compliance CUSOs Intensifies
OVERLAND PARK, Kan. As credit unions continue to keep up to speed on complying with new regulations, doing so may spawn the growth of CUSOs that specialize in regulatory compliance. Mike Hales, partner with Rochdale Group Inc., a consultation services CUSO, predicts that the industry will move more in that direction, a shift that may benefit some smaller credit unions who struggle financially to stay within compliance.
Regulatory compliance burdens are going to continue to increase through laws that havent been written yet, Hales said.
In a new white paper titled The Interdependent Credit Union–A Rationale and Blueprint for the Design and Development of a Collaborative Business Model for the Reduction of Common Operating Expenses, Hales cites rapid industry consolidation, increased compliance burdens and an aging membership demographic among challenges to the traditional credit union model.
Rochdale Group recently surveyed more than 100 credit unions to better determine perspectives on outsourcing and collaboration to reduce common operating expenses. More than 60% ranked compliance number one followed very closely by vendor management and due diligence.
We have to step back and take a look at the industry. The timing is like yesterday. We dont need to go outside for help. We have it all internally, Hales suggested.
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