LIVONIA, Mich.–CU Solutions Group said it has acquired majority ownership of credit union sector rights to AffirmX’s patented risk management and compliance solutions.
As part of the agreement, the company said CUSG will expand and enhance the delivery of AffirmX’s compliance offerings in conjunction with state credit union leagues.
Frederick, Md.-based AffirmX currently serves more than 120 credit unions nationwide with bundled and unbundled compliance risk assessment tools and services, including enterprise risk management assessment, regulatory compliance monitoring, the AffirmX Four Report package, IT risk and vulnerability, loan review services, and more.
CUSG said several state leagues and associations already distribute and support AffirmX solutions, including the Mountain West, Maryland/D.C., New York, Connecticut, Dakotas, New Jersey and Indiana associations, as well as the National Coalition of Firefighters Credit Unions and the Education CU Council. This new alliance will seek to expand that network of association partners and build on AffirmX’s success in the marketplace, CUSG said.
‘Effective Partnership’
“We are excited about becoming a part of the national framework of relationships and solutions brought to the table by CUSG and our other partner and investor leagues,” Ken Wolff, CEO of AffirmX, said. “With the addition of these new relationships, and further leverage of our existing ones, and their vast knowledge base, content and distribution networks, we hope to ease the burden of regulatory change management for the credit union community nationwide and look forward to a powerful and effective partnership for years to come.”
CU Solutions Group provides technology, marketing, HR performance and strategic advisory solutions to more than 3,400 clients nationwide, and said it will leverage its existing product suite and client base to coordinate enhancements and additions to the AffirmX Governance, Risk and Compliance suite.
“Providing credit unions with regulatory compliance tools and consulting has long been a core business for state leagues and associations,” said Dave Adams, president/CEO of CU Solutions Group. “In cooperation with League InfoSight and CUNA, CUSG has been at the forefront of enabling these leagues to have the investment, sales and support opportunities necessary to provide top-notch technology and service to member credit unions in this area. This transaction will further expand those opportunities.”
Additional Partners Sought
Adams added it is “CUSG’s strong desire to share this investment and distribution opportunity with interested partner leagues, including those who are already committed to doing so.”
As part of this transaction, CUSG said it and co-investor leagues will have exclusive and perpetual license to the patent, code, contracts and intellectual property for all AffirmX solutions in the credit union sector. In turn, CUSG will contract with AffirmX to service current and future contracts and to partner in future product development.
In cooperation with participating state leagues nationwide, CUSG and AffirmX also said they plan to co-invest and co-distribute a robust suite of governance, risk and compliance (GRC) solutions that will be made affordable to credit unions of all sizes.