CUNA Brokerage Services Inc. (CBSI), the Waverly, Iowa-based wealth management subsidiary of CUNA Mutual Group, joined LPL Financial’s Institution Services platform with approximately $36 billion in brokerage and advisory assets, the company said in a news release today.

“By combining CUNA Mutual Group’s expertise in client experience and data-driven strategic consultation for credit unions and advisors with LPL’s leading platform, we will deliver an advisor and customer experience unique to the credit union industry,” CBSI President Rob Comfort said in the news release. “We are committed to helping more consumers make financial decisions that work for them, and we will continue to build, buy or partner to do so.”

Over the last four years, CUNA Mutual’s wealth management business has grown from 411 advisors managing $23 billion in assets to nearly 550 advisors overseeing more than $36 billion, LPL spokesperson Rachel Wood confirmed in a June 14 email.

She also confirmed that although CBSI would be switching to LPL’s platform, the CUNA Mutual Group subsidiary would continue to support its parent company’s advisors as in-house broker-dealer and RIA. CUNA Mutual will continue to be responsible for the front-office operations, which include sales management, culture, growth strategy and recruiting, while LPL will now handle all the back- and middle-office operations, she said.

Only a fraction of credit union members take advantage of the wealth management services available to them, said Wood.

Comfort explained why so few credit union members availed themselves of the wealth management services his subsidiary offered.

"There are a few reasons credit unions have such low penetration rates when it comes to wealth management," he said. "Historically speaking, credit unions have been most focused on the businesses they know best—the traditional balance sheet businesses of loans and deposits. They’ve also had far too few advisors, and when they do have services available, they often don’t have a refined approach to getting the word out among members. These are all strengths at CUNA Mutual Group, and studies have shown that when a member has a wealth management relationship, it helps bring in more loans and deposits, too."

Comfort said that CBSI's alliance with LPL will allow his firm to focus on providing an elevated client experience augmented by data-driven strategies for wealth management.

According to Rich Steinmeier, LPL Financial managing director and divisional president, Business Development, CBSI and LPL are hoping their partnership will change members’ minds about the value proposition they have to offer.

“CUNA Mutual Group is a leader in its market,” he said in the news release. “We look forward to supporting them in growing their capacity to serve a marketplace with an increasing demand for personalized advice.”

CBSI’s transition to LPL’s platform is expected to be completed by early 2022.