Credit unions may soon have another alternative for theirpayment system processing through a new CUSO scheduled for launchby the corporate credit union network.

The Association of Corporate Credit Unions recently made theannouncement on the new entity, which aims to capitalize on thevarious core services utilized by more than 7,200 credit unions,including products such as ACH, national settlement, automatedsettlement, international services, and custody and safekeeping, aswell as services offered through subsidiaries of U.S. CentralFederal Credit Union.

It is not known how many or which corporate credit unions areparticipating in the launch of the unnamed CUSO. Larry Harmon,executive director of the ACCU, initially told Credit UnionTimes he would provide more details but later said, “We aregoing to hold off on additional comments for [now]. I will be intouch as we are prepared to release additional information.”

In a statement, the ACCU said “Corporates are in agreement thatthe payment systems developed and operated by U.S. Central-systemsboth supported and distributed by the corporates-are an invaluableresource for the credit union network. Consensus is that thesesystems are critical to keep intact, as they represent significantscale and offer a great example of industry collaboration.”

Mid-Atlantic Corporate Federal Credit Union in Middletown, Pa.,said it took a proactive approach a year ago, working independentlyto find the best service solutions for its members as it began tomove away from U.S. Central.

“So, we already have a plan in place that enables us to continueproviding members with the payment systems they need,” wrote JayMurray, president of Mid-Atlantic, in an e-mail. “In fact, othercorporates have reached out to us about providing assistance withtheir back-office needs. We'll watch developments at the nationallevel and support cooperative efforts where they make sense, but weare well-positioned now to help our members succeed.”

A source who is familiar with the venture said the ACCU may alsobe considering partnering with CO-OP Financial Services. Thecorporate credit union network would form a CUSO and jointly own itwith CO-OP. The source said those corporate participating in thenew CUSO “just gave away a large percentage of their paymentsystems platform.” CO-OP was not available to comment.

News of the ACCU's CUSO launch came a week before the NCUAannounced the creation of two new bridge corporate credit unionsassuming the operations of Members United Corporate of Warrenville,Ill., and Southwest Corporate of Plano, Texas. NCUA Chairman DebbieMatz said the creation of the four bridge corporate-U.S. CentralBridge Corporate Federal Credit Union and Western Bridge CorporateFederal Credit Union were the first two-ensures that 4,600 membercredit unions continue to have access to essential liquidity andpayment services. The two newest bridge corporates are MembersUnited Bridge Corporate Federal Credit Union and Southwest BridgeCorporate Federal Credit Union.

Meanwhile, at least one corporate is concerned with anondisclosure agreement required by U.S. Central Bridge CorporateFederal Credit Union, which assumed the operations of the U.S.Central Corporate Federal Credit Union in September. The executivewith the corporate said it seems information should be allowed tobe shared with members if they choose to see it.

The disclosure makes sense since the NCUA/NCUSIF/StabilizationFund owns the U.S. Central Bridge and all federally insured creditunions own the fund, the executive reasoned. The corporate chosenot to sign the NDA saying it is committed to keeping its creditunion members involved and informed regarding how services areprovided to them.

Credit Union Times Senior Correspondent Jim Rubensteincontributed to this article.