The case for cooperative IT: How it works and who it’s for
Over ten years ago, five credit unions came together and formed a credit union service organization (CUSO). A majority interest was held by one, very large credit union, which owned all of the technology, had a full-time IT staff and was running an online banking system. The other players were much smaller credit unions that couldn’t afford their own systems or IT staffs. Together, these credit unions formed a technology company that was organized as an S corporation. The company was designed to retain very little profit, but instead to pass on any savings to its participating credit union members. Every founding credit union had a seat on this company’s board, although board control was held by the largest credit union.
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(Insider Story)
