COLORADO SPRINGS, Colo. — On the verge of finalizing a 51% buyout of Atlanta-based Credit Union Service Corp., CO-OP Financial Services disclosed Wednesday a series of expansion moves including plans for an ATM pact with Costco Wholesale Corp. patterned after its ongoing 7-Eleven hookup.
At the same time, CO-OP, whose members are convened here this week for the annual meeting, said "five more big credit unions" that were not identified are prepared to start shared branching while new clearing and processing inroads are being made by CUs in deposit imaging at ATMs.
"There are 12 credit unions going live on imaging deposits at ATMs with lots more to come," forecast Stan Hollen, president/CEO of the Ontario, Calif. based CO-OP, which is also the nation's largest CUSO.
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Regarding negotiations with Costco, he said arrangements for the ATM processing deal will be made "within 60 days" and follows the ATM arrangement CO-OP has with the 5,500 stores in 7-Eleven.
Costco, with headquarters in suburban Seattle, is the largest wholesale membership chain with 376 stores and $60 billion in sales. Hollen said because of prior arrangements with banks, both Oregon and Washington State will be off-limits to the ATM sharing deal for CUs, but other states where Costco has stores will be in play.
Hollen also said CO-OP would continue trying to interest more of the league-linked linked processing networks to sign with CO-OP similar to deals made with Encore Electronic Service Coop of Falls Church, Va. and the New Mexico-based CU Anytime network.
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