Shareholding credit unions of the Financial Service Centers Co-Operative shared branch and payments network have approved a proposal to merge their network with CO-OP Financial Services.
This means that when the merger closes in 2012 there will be only one shared branch network serving credit unions across the U.S.
“We are very happy our shareholders so clearly see the benefits of combining with CO-OP Financial Services, which not only advances shareholder value but the vision of FSCC to have every branch of every credit union an outlet,” said Sarah Canepa Bang, president/CEO of FSCC in San Dimas, Calif.
“This is a milestone day in our work to blend the strengths of both companies, creating a more tightly integrated shared branching network,” said Stan Hollen, president/CEO of CO-OP in Rancho Cucamonga, Calif.
“The combination of services will result in efficiencies and economy of scale in branding, technology and administrative costs that will benefit all shared branching participants,” Hollen said.
After the merger Bang will continue at CO-OP as chief operating officer and chief strategy officer, the two organizations have said previously.
Hollen and Canepa Bang have also said that for the foreseeable future credit unions in each network will continue to use the same shared branching platforms they do now. These are similar in many ways, but not the same and changing would generate unneeded expenses, they said.
The executives have also explained that the merger would allow the new organization to approach certain vendors, like FIS and 7-Eleven, which they already have in common with increased clout from greater volume.