The Model Credit Union

The Model Credit Union augments member trust with a modern business model based on capability and performance

CUDA’s vision for the sector is based on our target operating model for the Model Credit Union (Model CU), comprising four interlinked areas with risk embedded at the core.
The Model CU does not mimic others but differentiates based on its unique selling point of member trust.
The Model CU leverages data to target segments and needs which can be met profitably with the correct product and price.
Members are attracted, activated and retained by value, delivered with frictionless and personalised experiences on the channel they prefer.
Business and financial models are optimised, including greater use of credit union owned shared services which are an underexploited source of competitive advantage.
Strong governance structures create a performance culture where boards and managers lead by example, allowing policy makers to permit greater powers.

How you deliver your brand promise to create member value and beat the competition

The Model CU differentiates based on its unique ethos and utilises a relationship-based approach to actively support member decision making via well-trained advisors.

It proactively targets the most profitable segments and member needs using a data-driven approach and delivers frictionless, personalised experiences on the channel members prefer.

A balanced product portfolio is led by lending as this is most profitable. Products are based on validated member needs and deliver true value, helping The Model CU avoid price competition.  

24/7/365 member engagement is supported by digital channels, alongside branches for those seeking the personal touch. Preferred partners are utilised to extend market reach.

Members can self-service using digital tools and receive fast and effective responses to all other queries.

See how credit unions enhance member engagement.
See how credit unions grow income using digital marketing
See how credit unions onboard loans and members online

Integrated elements which create core competencies and an efficient, agile business model

The Model CU operates with well-trained staff who are resourced and incentivised to perform. Roles and responsibilities are aligned across board, management and operations. 

The Model CU invests strategically in capability. Cloud-based technologies such as FinTech, CRM and banking systems support real-time automation using API connectivity and generate data for better business design.

Critical processes such as new member and loan requests are subject to fast turnaround times by dedicated experts. All processes are mapped, measured and compliant.

The Model CU preserves the unique ethos which members value but operates with a performance culture that encourages continuous improvement and innovation.

The Model CU communicates through multiple channels and is capable to deliver personalised member communications on the channels and frequency they prefer.

See how CUDA supports skills and CPD (training)

See how CUDA improves member and loan approval (enablers) 

See how CUDA improves member communication (hive) 

See how CUDA supports skills and CPD Training
See how CUDA improves member and loan approval
See how CUDA improves member communication

Sustainable surpluses for member rewards and a resilient B. Sheet for regulators

The Model CU leads with lending but captures all income opportunities including third-party partnerships. Income is diversified across products and tenors, with pricing analysed to ensure risks and rewards are appropriate. 

Cost:Income KPIs ensure cost are aggressively managed. Fixed costs are covered by lending income and consistently reduced using digital efficiency and collaborative procurement. 

The Model CU benefits from a wide range of investment options, enhancing returns. Long-term funding via bonds, securitisation and permanent capital reduce term maturity mismatches. Legislative reform allows credit unions to syndicate loans among themselves to enhance analysis and reduces risk. Centralised sector risk management promotes transparency and proactivity, reducing risk for credit unions and regulator alike. 

Collaborative shared services allow the Model CU to create economies of scale and scope. Shared Services are owned, ensuring benefits flow to participating credit unions and their members, not to commercial or vested interests.

See how CUDA diversifies credit union income (peopl)

See how CUDA grows lending income (proenergy or business)

Request CUDA’s capital management agenda  (contact us)

See how CUDA grows lending income

Good governance creates sustainable financial performance to secure additional regulatory permissions

The Model CU has high corporate governance standards including well-trained management and boards, clear policies, and tested processes with appropriate checks and balances. Good governance aligns resources on high performance that creates financial resilience and sustainability.

Consistent compliance with regulatory requirements builds trust, allowing the Model CU to receive powers commensurate with its strong capability and operate with a more capital efficient B. Sheet.

The Model CU receives legislative approval to pursue new business opportunities without increasing risk and receives fair treatment relative to its competitors.  

Collaborative procurement allows the Model CU to create economies of scale and scope. It conducts due diligence to ensure supportive partners who clearly define total cost of ownership (TCO) and service level agreements (SLA).

Risk awareness is embedded at the core and supported by capability and processes

In the Model CU credit, market, liquidity, operational and legal risks are identified and communicated by well- trained staff and enabling technologies. 

Thorough analysis is undertaken by dedicated professionals to ensure accurate measurement of risk and responses according to well-tested procedures.

Risk management is proactive, constantly monitoring the environment and operations. Scenario modelling and stress testing allow the Model CU to quantify and mitigate risk in advance. 

Risk communication is precise with strong documentation, segregation of duty and streamlined communication across operational, management and board staff. 

Risk capabilities expand in parallel with the Model CU’s size and complexity, including the addition of Asset: Liability management to support B. Sheet evolution.

See how CUDA improves risk management skills