This post was originally a live blogging of an Indiana Credit Union League event entitled, The Power of the Network presented by Randy Karnes, CEO of CUAnswers. Then work got in the way so now three days have passed. The nuggets of wisdom are still fresh and are as follows:

• We should follow your own credit union business model when building your CUSO. Randy advocates offering ownership shares in your CUSO along the same lines of your credit union such as one member – one vote. He says it is all about selling excess capacity to vested owners. We did joke about where the heck is the excess capacity at most credit unions.

• Dump the “movement”, start a “network”. Randy’s point is well take here, “Movement” ... what does that say to members? “Industry” ... what does that say to members? “Network” – implies consumer value and power? I have never liked the word “movement” as it just doesn’t seem to fit in today’s world. The question will be how can the power of the network translate to the local member so it is more than just a word? In Tuesday’s Indianapolis Star – Business Section the lead article was—Stretching resources via barter networks.

• Examples of powerful credit union networks that Randy threw out: PrimeAlliance, Co-op, NACUSO, PSCU, and CUAnswers.

• “Because working alone does not seem to be translating into an expanding market share, even when we expand our potential opportunity.” “Our models are too narrow.”

• “How far down in to the stack will credit unions cooperate? Sharing a marketplace, promoting like products and services, sharing resources (branches), sharing team members, doing business with multiple memberships, coordinating multiple Boards?” Credit unions internalize resources when we should be externalizing them for the good of the network.

• Embrace the concept of unspecified returns. Connect to the right people with a vested interest and the returns will come.

• If you want to improve your credit union departments – have them sell their services to others. They will improve given the scrutiny of the marketplace and customers. He specifically called out marketing, training and accounting departments selling their services. I can testify to his statement about this with FORUM Solutions. By selling technology services to others via FORUM Solutions has made us a better technology team for the credit union. It takes one out of their comfort zone and teaches you to embrace entrepreuneurial concepts – in a hurry – to survive.

• It is difficult to find an audience with the mindset to leverage a collaborative solution. How true as there is too much of, “I need a template or a blueprint” thinking instead of figuring it out and taking a chance.

• Because to truly leverage a collaborative solution, you must be ready to see: patronage as an investment, diversify and doing things multiple ways as effiicent, and negotiating internal and external power structures as innovative.

• CUAnswers offers scholarships for credit unions that allows for two years of free data processing service to help a credit union change their business – impressive.

Randy Karnes is a tremendous asset to the credit union network and his concepts are invigorating and hold much promise. He says CUAnswers is crazy for collaboration – I believe him. Although, I must disclose that when we were offering our lending solution, TAPS Lending, to other credit unions we had two credit unions using the CU*Answers core solution and they expressed interest in TAPS. I called CUAnswers to check out the possibility of working together to help these credit unions and was told that CUAnswers was not interested. I didn’t escalate the question like I probably should have and I bet I didn’t get to the right person. I do see CUAnswers as a beacon for collaboration and feel like my personal situation was likely an isolated incident.

Thank you to Matt from Eli Lilly FCU for making this event a reality and to the Indiana Credit Union League for facilitating.