LIVONIA, Mich.–A number of credit union organizations have announced the joint acquisition of credit union sector rights of AffirmX's patented risk management and compliance technology, and saying they have a goal of strengthening and expanding compliance solutions for credit unions nationwide, the group has formed the multi-league investment entity, AffirmXCU, LLC.
Investing in the new entity are the Mountain West Credit Union Association (Colorado, Arizona, Wyoming), Maryland & D.C. Credit Union Association, Indiana Credit Union League, Credit Union League of Connecticut, the Cornerstone Credit Union League’s league service corporation, CU and CU Solutions Group (CUSG), a national CUSO majority owned by the Michigan Credit Union League.
Compliance Offerings
According to the organization, as part of the agreement, Maryland-based AffirmX will continue to provide servicing on all products and will retain a minority share of the newly formed CUSO. CUSG, in conjunction with state credit union associations, will expand and enhance the delivery of the jointly owned compliance offerings. CUSG will also leverage its existing product suite and client base to manage contracts, marketing and sales, the organizations said.
Other Solutions
According to CUSG, 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 assessment
- Loan review services
- Fair Lending risk assessment
- Internal audit outsourcing
- Vendor management
- Cybersecurity risk assessment
- ADA compliance servicing
"We are all excited to join with trusted colleagues to invest in, and distribute, affordable and high-quality compliance solutions that will benefit credit unions nationwide,” Scott Earl, CEO of the Mountain West Credit Union Association, said.
Exclusive License
The organizations said as part of the transaction, the new CUSO will have exclusive license to the patent, code, contracts and intellectual property for all AffirmX solutions in the credit union sector. The CUSO will contract with AffirmX to service current and future contracts, and to partner in future product development enhancements.
"Providing credit unions with regulatory compliance tools and consulting has long been a core purpose of state leagues and associations," said Dave Adams, president/CEO of CU Solutions Group and president/CEO of the Michigan Credit Union League, said. "Many state leagues — including Michigan — already market the League InfoSight-owned ComplySight product which is used by more than 230 credit unions,” Adams added. “The AffirmX suite provides a complement to ComplySight, and in Michigan — and I believe soon in other states — ComplySight and AffirmX will be marketed side-by-side to give credit unions a full suite of compliance resource options.”
Leagues Already Partnered
According to CUSG, several state credit union leagues and associations already distribute and support AffirmX solutions, including the Mountain West, Maryland and D.C., New York, Connecticut, Dakotas, New Jersey, Indiana and Michigan associations.
“This joint acquisition will seek to expand that network of partner leagues to market and support the AffirmX suite, while also enabling shared ownership of products and services,” CUSG said in a statement.