The $480 million Water and Power Community Credit Union, headquartered in Los Angeles, has moved its PIN-based debit card transactions to PSCU Financial Services.
The move brings 25,000 PIN accounts and 14 ATMs to PSCU, the CUSO said.
"This credit union joins the growing list of 50-plus credit unions that have recently moved or committed to move debit business to PSCU Financial Services," PSCU said in a statement announcing the move. Water and Power Community Credit Union will gain operational efficiencies since PSCU already handles its 27,000 signature-debit accounts as well as its 8,500 credit card accounts.
"There is tremendous efficiency in having a single point of management for signature and PIN debit accounts. We appreciate the cooperative's excellent performance and professionalism and we are eager to expand our relationship with them," said Rhona Gerber, director of member services for Water and Power Community Credit Union. She added that the credit union will also gain preferential pricing by adding another platform to their processing agreement.
Peak5 Financial Shutters
Peak5 Financial, formerly Flatiron Financial and Centrix Financial, closed its doors on July 10.
The company serviced loans originated by credit unions. Two companies, Systems & Services Technologies in St. Joseph, Mo., and Auto Portfolio Services in Greenwood Village, Colo., have taken over some of Peak5′s loans.
One client was Velocity CU, which told Credit Union Times it was notified on June 12 that Peak5 would be ceasing all operations as of July 10, giving the CU less than 30 days to transfer the accounts. Velocity had already transferred the majority of its loans from Peak5 to SST in January 2009.
"Velocity will work closely with our members and SST to ensure that our members' loans and payments are serviced properly during this temporary disruption caused by the untimely closure of Peak 5," Debbie Mitchell, president/CEO of Velocity, said.
Velocity added that if a credit union transferred servicing to SST, all the relevant loan information was also transferred and borrowers were notified by mail.
Peak5 CEO Kevin Barry said in October 2008 that Peak5 would either have to find a buyer, raise rates or close by year-end (CU Times, Oct. 8, 2008).
Anoka Hennepin Credit Union Looks
To TNB for Post-Merger Assistance
After a merger with Anoka County Federal Credit Union, the surviving Anoka Hennepin Credit Union looked to TNB Card Services to help overcome potential member confusion.
The merger left the credit union with two card programs on different processing platforms with one card portfolio processing with The Members Group and the other processing with Fidelity National Information Services. Rather than stay with one or the other, the $157 million credit union chose Dallas-based TNB.
"There was no continuity in the card programs and neither platform was performing to our expectations," said Jeff Claussen, Anoka Hennepin CEO, in a statement about the move.
"Our costs were also double, so we opted to consolidate the portfolio with a new processor. TNB's capabilities and expertise encompasses more than what our two current processors offer," Claussen explained. "With TNB, we will have a more robust card product that will allow us to price based on individual member risk, as well as rewards and marketing support so that we can be more proactive in promoting our card."
According to Mark Fenner, senior vice president of TNB Card Services, "TNB's expertise and partnership approach are the key differentiators in helping credit unions grow their card programs. And, we are introducing a number of exciting new products such as Design It! Photocard that help credit unions compete with national issuers."
Fenner added, "We have added a number of new services and capabilities to simplify and enhance card program management, empowering credit unions to take their card programs to a higher level of growth."
Anoka Hennepin Credit Union will convert approximately 3,500 card accounts with balances of $4.2 million to TNB. The credit union plans to grow the cardholders and balances by 15% within two years of the conversion.
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