Important vendor relationships when beginning a De Novo credit union

As new De Novo credit unions launch this year, there have been discoveries that any CEO looking to launch a new credit union will need to keep in mind as they begin this process. This article will cover key vendor relationships that most De Novo credit unions will want or need to establish at launch so they can stay competitive in the credit union industry.

First stop, the NCUA and the Federal Reserve

The first two relationships are not optional as the credit union must have approval from the NCUA and a Routing & Transit number from Lexus Nexus (ABA) before they can continue with this project. It is also recommended that these relationships with vendors have begun before beginning your conversion to a core processor.

One of the most important vendors is the Federal Reserve (FED), as a relationship must be established with them before the credit union can begin processing through the Automated Clearing House (ACH). There are also other vendors such as Share Draft processing, debit card/credit card settlement, ACH origination, etc. that all require the credit union to have a relationship with the FED.

 

continue reading »