U.S. Central's eCom Goes to CO-OP
CO-OP Financial Services has won the bidding for the online and mobile bill payment business from U.S. Central Bridge, the NCUA said.
All employees of the corporate’s Corporate Network eCom subsidiary will become employees of CO-OP Financial Services and continue serving the same clients, the big CUSO said, and the NCUA said the sale will facilitate the final resolution of the fate of the former U.S. Central Corporate Credit Union.
“Today’s action is another important step toward the goal of winding down U.S. Central Bridge,” NCUA Board Chairman Debbie Matz said Thursday.
“In implementing the corporate resolution plan, NCUA has successfully continued payment services to consumer credit unions without interruption, and managed to the lowest possible long-term cost. The selection of CO-OP is also consistent with our preference, wherever feasible, to find solutions within the credit unions system,” Matz said.
The sale is expected to be final within 90 days and the transition “should occur seamlessly, as the transaction requires no change in the processing platform,” the agency said.
“Going forward, CO-OP will communicate directly with eCom’s clients about the transition process,” the NCUA said in its statement.
Stan Hollen, president/CEO of 3,000-client CO-OP Financial Services in Rancho Cucamonga, Calif., said, “The bill pay services of eCom are a perfect extension of the e-commerce business line of CO-OP Financial Services, which already includes the online CO-OP Bill Pay and advanced CO-OP Mobile banking solution.
“We look forward to providing the same high level of service eCom clients have always received for bill pay, and helping all of our clients compete even more effectively in the future against banks in terms of access and convenience services they can offer their members.”
Lenexa, Kan.-based U.S. Central was placed into conservatorship by the NCUA in March 2009, 10 years after it was created. More than 750,000 credit union members use at least one of its electronic bill payment solutions.
The announcement was the second in as many days involving bidding for the business of conserved corporates. The NCUA said Wednesday that Catalyst Corporate Credit Union had won the bidding for Western Bridge.