SAN FRANCISCO — Patelco Credit Union has questioned ShareBuilder Corp.'s statements yesterday that it plans to keep other CU alliances intact.
The credit union received a notice from ShareBuilder that it will not renew its co-branded service partnership.
Scott Waite, senior vice president and chief financial officer at Patelco, provided Credit Union Times with a Dec. 5 letter from Kathy Schanno, ShareBuilder director of marketing, saying that "the change in ownership…has resulted in directional changes in our program" following a November 2007 acquisition by ING DIRECT. ShareBuilder said it will not renew Patelco's co-branded services agreement and asked that its links and banners be removed from the credit union's Web site by Jan. 15, 2010, the end of Patelco's contract.
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Schanno told Credit Union Times since the acquisition, ShareBuilder CU clients have dropped from 125 to 50. ShareBuilder is "working through funding and finalizing the future of [co-branded partnerships with CUs], Schanno said, adding she is not sure how many there will be in the future."
Schanno has not yet responded to whether ShareBuilder had sent non-renewal notices to other CUs besides $4 billion Patelco.
Waite said Patelco "has been very pleased with our partnership with ShareBuilder and we are very sorry that it is coming to an end."
"It was a great idea to help our members take advantage of 'affordable' monthly investing in the equity market," he said.
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