In that regard, Scott Hunt, acting as agent for the conservator of Western Bridge, today wrote, “The National Credit Union Administration (NCUA) remains firmly committed to ensuring continuity of service and operations for all Western Bridge member credit unions. We have no immediate plans to shutter Western Bridge’s operations. NCUA is committed to an orderly and timely resolution that ensures uninterrupted service to all member credit unions.”
Hunt, who also serves as NCUA’s director of the office of corporate credit unions, continued, “While Western Bridge is a temporary entity, NCUA seeks a holistic approach in addressing member credit union service needs that will not require significant changes to how your credit union currently does business. However, credit unions that choose to directly seek an alternative provider in the coming months are still free to do so.”
The letter also revealed more of the strategy at the NCUA regarding next steps for Western Bridge, “The service infrastructure and member service volume at Western Bridge have significant value. NCUA is working to solicit acquirers to obtain the business as a package transaction that will have minimal impact on member credit unions. This may be accomplished through a merger with or an acquisition by another corporate or wholesale financial institution.”
The value would be maximized by maintaining the user base, the letter stated.
Outside experts have told Credit Union Times that they believe Western Bridge operations will continue for as long as a year, so bottomline: there appears to be no rush.