Western Corporate Federal Credit Union's decision to close its paper processing facilities, which will result in 60 pink slips, is part of CEO Phillip Perkins' efforts to reduce costs for the struggling corporate.
NCUA spokesman John McKechnie said the move is reflective of the industry's progression from paper check processing to electronic image capture, and the decision to consolidate processing facilities was made prior to WesCorp's conservatorship. However, he also said the "pace has quickened" to close the paper processing units under Perkins.
Tony Kitt, WesCorp executive vice president, member services, told Credit Union Times in March 2008 the corporate wouldn't require members to convert to imaging, and said WesCorp would continue to process paper for members "as long as we can."
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However, Kitts said today that "in re-evaluating that strategy, it's far more costly for credit unions and WesCorp to maintain that infrastructure, so we've been much more motivated to convert members to imaging."
He said he's discussed the decision to consolidate processing facilities and more quickly convert members to imaging during WesCorp's town hall meetings with members, who have "responded well".
He denied the decision was a significant strategy change for the corporate, adding, "I've always told members paper processing would get more expensive as time goes on."
The affected employees represent 12% of WesCorp's workforce.
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