Because credit unions provide many people with their first contact for savings and loans, they become a trusted, comfortable place for members to turn to when they need financial planning, according to Valorie Seyfert, president and co-founder of CUSO Financial Services and Sorrento Pacific Financial.
Assistance with their financial futures is exactly what credit union members are now asking for, Seyfert said in an interview. The two companies she heads are subsidiaries of Atria Wealth Solutions that work with credit unions and banks to provide financial planning programs. CUSO Financial Service is a broker-dealer and RIA.
“A lot of Americans are realizing they need assistance in financial planning, either to get started or to plan for retirement, and credit unions are a good place for them to turn,” Seyfert said. “Credit union members are often lifelong members. They like the idea that their credit union is not-for-profit.”
Credit unions offer an opportunity for financial advisors to expand their practices, Rob Comfort, president of CUNA Brokerage Services Inc., a wealth management firm based in Waverly, Iowa, said in an interview.
Only about one-sixth of the 6,000 credit unions in the United States offer wealth management services as an option, and within that 1,000 only about 2% of credit union members take advantage of the service, Comfort said. Yet, more than 50% of credit union members have said they would like their credit unions to provide financial planning services. For the most part, only the larger credit unions provide financial planning services, he said.
“But credit unions are known for their collaborative spirit with each other,” so larger credit unions are looking for ways to assist smaller ones in providing additional services, she said.
Covid actually helped credit unions in providing more services because it accelerated the adoption of technology that allowed smaller credit unions to work with advisors and provide additional services, Seyfert said.
The requests for more financial services are falling on willing ears at credit unions. “Credit unions and banks, which we serve, want to provide additional services to their members,” she said. Credit unions will adopt the trends prevalent in the financial industry and provide more holistic services.
Credit unions have experienced steady growth over the years because they know the needs of the particular industry they serve, she added.
Comfort added, “Credit unions are the most underleveraged opportunity in the financial industry for advisors. They are the next great opportunity for advisors to offer their services, in part, because the credit union movement is growing and so few members have access to wealth management services. The members have critical needs for the services that advisors provide.”