Too many merging credit unions disregard credit and debit card portfolios in their merger negotiations and preparations and this can result in needless expense and member problems, according to credit union and CUSO executives.
"Let's face it, few credit unions merge because of a credit card portfolio," remarked Stephanie Davis, vice president for member relations at the 72,000-member $685 million First Community Federal Credit Union. "Usually there are much bigger strategic and practical questions on the table if credit unions are talking about merging. But at the same time, cards are such high-touch and complicated products that they really need to be considered earlier in the whole merger discussions."
By high touch, Davis meant that both debit and credit cards are credit union products that many members use every day or almost every day and that they need to work as seamlessly and simply as possible. At the same time, the products are complicated and involve many different parts of the credit union, and this makes them vulnerable in a mergers, which are usually already complicated and require many separate steps.
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