STCU, one of the largest credit unions in the Northwest, has abandoned its long-time third-party broker-dealer for CUSO Financial Services.
The Spokane, Wash.-based institution will look to CUSO to rebuild its investment program and integrate it into the credit union’s core offerings and services, CUSO announced on Thursday.
STCU had used AIG/VALIC as its broker-dealer since the credit union initiated the investment services program 15 years ago.
The program has four advisors, all employed by STCU but licensed by CUSO. This "dual employment" arrangement was important to STCU as it wanted to maintain and leverage its own brand for the investment program, CUSO said.
Under its previous arrangement with AIG/VALIC, the advisors were not employees of STCU, so when they left they took the book of business with them.
The new program has nearly $9 million in assets under management, which STCU is expecting to grow steadily over the next several months as it markets its services.
STCU chose CUSO from among six broker-dealers, citing CUSO's technology as a key factor in its selection.
“One of STCU’s objectives is to offer our members a full spectrum of financial products and services to support them throughout different life stages,” Sue Welberry, director of operational services at STCU, said in a statement. “With CFS’s technology tools that allow members to do business with us either in the branch or on their own time, we can help guide Generation Z to Baby Boomers with their long-term investing goals.”
The credit union has 146,000 members, approximately $2.2 billion in total assets, and branch locations throughout Eastern Washington and Northern Idaho.
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