Ownership Rights Important to Patelco’s New Investment Program
More than three years after a popular investment program used by credit unions ended its co-branding alliances, Patelco Credit Union is happy with its replacement.
The $3.6 billion Patelco’s CUSO, Patelcorp Inc., recently signed on with SaveDaily’s InvestDaily program that allows members to designate the amount and frequency of their investments, which are then deducted from any number of accounts they choose.
Patelco in Pleasanton, Calif. was one of roughly 125 credit unions that partnered with ShareBuilder Corp., an online brokerage company that offered low-cost, online brokerage transactions and automatic investment plans.
After ShareBuilder was acquired by ING Direct in 2007, the firm moved to end its co-branded partnerships with credit unions, a move that was painful to do, the company acknowledged at the time.
“I have been searching to create a solution to replace ING's ShareBuilder for quite some time and I think we've done it here,” said Scott Waite, senior vice president and chief financial officer at Patelco. “Unlike that program, the credit union retains ownership of the member investment accounts. Keeping that relationship is very important.”
Waite said through the new partnership, Patelcorp will help promote and offer the SaveDaily platform to other credit unions.
Features such as the ability to select the number and type of mutual funds offered and that investments and redemptions are self-directed, were appealing to Patelcorp, Waite said.
Members can also set up automatic sweeps from their credit union savings accounts and schedule transactions. Custodial and health savings accounts are other options offered.
“This is designed to introduce savers to the investment world as well as provide an exciting new tool to the experienced investor,” Waite said. “This is an exciting way to assist (members) with creating wealth for themselves through their credit union.”