GRAND RAPIDS, Mich. -- CU*Answers, a credit union-owned core data processor, announced it has signed a deal with the newly formed ELCA Federal Credit Union to a "CU*BASE" agreement.
Chartered in July 2015, ELCA FCU, based in Chicago, Ill., currently has about $500,000 in assets. The new charter, scheduled to commence operations in the first quarter of 2016, seeks to provide financial products and services to the 3.7 million members of the Evangelical Lutheran Church in America.
Under the pact, ELCA will avail itself of the "Starting a Credit Union with CU*Answers" program, which will provide free CU*BASE data processing services to new credit unions for an initial two-year period.
"This is a very exciting initiative for the members of the ELCA," said Luis Reyes, chief operating officer of ELCA FCU, in a statement "Choosing the right data processor was among the most important decisions we've made during our implementation. With CU*Answers, we've chosen more than just a vendor—we've chosen a partner. CU*Answers shares a similar cooperative vision and offers an exceptional price model. The cost savings we'll realize during the first two years will be very beneficial to us as we start up."
Scott Page, CU*Answers' EVP, told Credit Union Journal that the total agreement is for an initial three-year term. "In addition to providing nearly all services free for [the] first two years, we continue to participate financially by discounting most services by 20% for year three as well," he said.
Page said costs for the third year will be determined according to credit union membership size, services desired, and actual volumes utilized for various services.
He added that at least two other start-up credit unions have used the system: The Finest CU ($4.2-million assets, based in New York City); and Catholic United Financial CU ($16.7-million, St. Paul, Minn.)
