ONTARIO, Calif.–The Hawaii CU League is investing in a CUSO that seeks to drive greater back-office efficiencies.
The company, called Plexcity, began operating in January of 2015 offering information technology, accounting/finance, and human resource solutions. One of the reasons for its founding was the reduced number of credit unions has reduced dues incomes for leagues and, as a result, required a greater focus on expense reductions. It was announced in late 2014 during the California and Nevada leagues’ meeting and, in addition to those leagues, also includes the New Jersey Credit Union League, and Maryland-D.C. Credit Union Association as investors. Plexcity also currently serves one non-owner client—the National Association of State Credit Union Supervisors (NASCUS).
“Our newest addition immediately decreases expenses for every association we serve, which contributes to their future stability,” said Tony Kitt, CEO of Plexcity, in a statement. “All of our owners believe we are better at driving down costs together than we are individually. We are honored and excited the Hawaii league has decided to buy into Plexcity and collaborate with other Plexcity partners to lower overall costs and increase member value.”
Kitt said the move is another signal that Plexcity’s cooperative model in sharing back-office resources is gaining momentum among credit union trade associations. “Members are increasingly saying they want their associations to hone in what is most important for their benefit and continued success,” he said. “That’s where Plexcity bridges the gap.”
According to Plexcity, lowering expenses is just one of several reasons why the Hawaii Credit Union League is buying into and using Plexcity, said President and CEO Dennis Tanimoto.
“We’ve been telling our credit unions that collaboration is one of the best ways to survive and thrive in the foreseeable future, so we wanted to lead by example,” he said. “We also felt there would be higher return on our members’ investment in us as a league.”
Tanimoto said Plexcity’s solutions will translate into higher economies of scale, eliminate redundancies, allow for speedier and more efficient operations through a cloud-based portal, and help the Hawaii league direct its full attention to serving member credit unions.
To date, all partners have seen a decline in the cost of back-office systems managed by Plexcity, and the cost savings should grow as the company continues gaining new association partners, Kitt said.