Organizers drawn from a range of corporate credit unions who had been working on forming a new payments corporate out of services presently offered by US Central Bridge today announced they had decided to give up the effort.
“We had always said we needed a viable business model and the math just wasn’t working,” said Brandt Peterson, executive vice president at Westminster, Colo-based SunCorp, who has functioned as a spokesperson for the ad hoc group. “The volumes we forecast just were not large enough to take the next step. We did not envision winning NCUA approval for a charter.”
Peterson stressed that no interruption in services to natural person credit unions is anticipated. “Our decision should have no impact on the credit union industry.”
Peterson indicated that the next step probably would involve “partnering with leading vendors within the payments industry” who will be sounded out about possible interest in purchasing the US Central Bridge payments businesses. He expressed confidence that there will be significant interest in going forward from multiple potential partners.
Corporates that have participated in these talks include Alloya Corporate FCU, Catalyst Corporate FCU, CenCorp, Corporate One, FirstCorp, Kansas Corporate, Kentucky Corporate, Missouri Corporate, SunCorp, Southeast Corporate, The Members Group, TriCorp, VolCorp, and Western Bridge Corporate FCU.