The National Cooperative Bank and The Members Group, a wholly owned subsidiary of the Iowa Credit Union League, announced Wednesday that they had inked a definitive pact to provide correspondent services to Iowa credit unions.
The deal had been many months in the making.
The plusses for Iowa credit unions, the partners said in a statement, is that there will be “no capital investment by Iowa credit unions now or in the future” and yet credit unions that sign on will get services that “are consistent with those offered by Iowa Corporate Central Credit Union today.”
That tiny Iowa corporate had indicated over a year ago that it planned to “wind down” activities.
The statement added that credit unions that decide to use the services of this new entity will get “local delivery of services meaning that credit unions will continue to work with the support staff at ICUL’s subsidiary, The Members Group (TMG).“
“As the Iowa Corporate works towards unwinding our operations we are happy to be able to offer Iowa credit unions an attractive alternative for their correspondent banking services,” said Sara Flynn, CEO of Iowa Corporate. “We look forward to working with Iowa credit unions to transition them to the new solution.”
Based in Washington, D.C., NCB is a federally chartered financial institution that serves a cross-section of cooperatives and their members – including business cooperatives, credit unions and other community development entities.