Credit union dot.com company having problems launching flagship product

AUSTIN, Texas - The rumor mill about credit union portal firm Good2CU.com has been in overdrive lately regarding the company's ability to deliver its "supersite" portal product. Amid speculation that it was folding up shop, the company announced last week that it was in discussions with a third-party to give them financial backing to help bring its long-awaited portal product to fruition. "Although no assurances can be made, we are hopeful to be able to announce a third party that would provide the financial and strategic acumen needed to move forward and maintain a summer launch date for the supersite," said Lee Cooke, Good2CU.com's president/CEO. Good2CU.com's supersite has been under development for the past six months. Since the company was launched last year it touted the fact that it was investing a tremendous amount of money (though no exact figure was given) on a financial services portal, so credit unions could compete with the multi-million dollar sites being developed by large banks. The company's portal concept is built around promoting credit union products, including online banking, online trading, and certain insurance products. Those transaction products are backed up with a content component. Cooke believes a transaction-based and content-based portal makes for a stickier site than one or the other alone. But while Good2CU.com's supersite has been under development a number of companies have launched competing portal products specifically geared for credit unions. They include MembersResources.com; www.cuvillage.com, a portal site developed by CUCorp., a CUSO of the Michigan League; memberemporium.com, a portal site developed by Internet solutions provider cavion.com; and a new portal site is on its way from FISI-Madison Financial, a Cendant subsidiary. Unlike other portal products that providers are giving away to credit unions, Good2CU.com charges a subscriber fee. It has a tiered pricing structure with annual fees ranging from $6,000 to $18,000. However many CUs will get the first six months free because of a sign-up special Good2CU.com ran early on. The company has signed up over 100 CU clients for the portal product. A PR spokesperson for the company said no money has exchanged hands between the clients and Good2CU.com, and the company will still try and meet its planned summer launch date, though it may not be in July as originally planned. Good2CU.com can offer its portal clients an instant online lending solution from FIData. GoodCU.com's parent company, Billing Concepts, acquired FIData in November 1999. Currently about 75 CUs are using FIData's loan engine, with 25 more under contract to use it. Last year FIData processed some 22,000 CU member loan applications for approximately $265 million. FIData clients are not affected by Good2CU.coms's third party negotiations. -pgentile@cutimes.com