DULUTH, Ga. -
Though the letter of intent was signed in February, CUSC CEO Carroll Beach said talks between the two companies started about a year ago, and CUSC's decision to seek out a partnership like this began about two years ago, when the firm's board came to the conclusion that CUSC needed to offer more than just its core product of shared branching.
"We knew we wanted to find an entity that had commonality with us, and that another credit union-owned company would be the most appropriate partner for us," Beach told Credit Union Journal. "I'm sure there was interest [in acquiring CUSC] from organizations outside of the credit union movement, but we wanted to stay with organizations inside the movement."
The new organization will represent 80% of all participating credit unions, 40 states, 87 (100%) stand alones and 75% of shared branching transactions.
Beach said the hope is to convert most of CO-OP's existing shared branches (gained through the acquisition of Southfield, Mich.-based SCC) to CUSC's Next Generation Network switch, but conversion will not be required. Standalone centers will be converted first and those outlets that are part of a credit union's location will be given the option to convert or not.
"This combination means great things for credit unions participating in shared branching," said Beach. "By synergizing operations with such a progressive and leading organization, we will create efficiencies that will attract more credit unions to shared branching."
