Middletown, Pa. and Columbia, S.C. — MY CU Services is set to take ownership of the PCSi division of Palmetto Cooperative after the parties entered into a strategic alliance.
MY CU Services LLC, is a CUSO in Mid-Atlantic Corporate Federal Credit Union's family of companies. PCSimages LLC (PCSi) is a CUSO owned by Palmetto Cooperative Services LLC, Cooperative Services Inc. (CSI), and Credit Union Partnership Inc.
The parties recently entered into an agreement to transfer ownership of PCSi and its payment services to MY CU Services. They said this strategic alliance extends MY CU Services' offerings and payment processing to more than 1,400 credit unions throughout the United States and Canada.
Palmetto Cooperative Services and CSI, the majority owners of PCSi, will have ownership interests and board representation in MY CU Services, with Mid-Atlantic Corporate Federal Credit Union remaining the majority owner.
The transition is expected to be completed in September, with both companies initially continuing to operate from their respective locations. PCSi said its existing clients will see "minimal" disruption from the consolidation since the alliance will continue to support existing payment service platforms.
Alliance Several Years In the Works
Drew Kishbaugh, president and CEO of MY CU Services, said the organizations have been discussing "for some time" how they might work together. He said this collaboration of MY CU Services and PCSi, which includes First Carolina Corporate Credit Union and several credit union league service corporations, "complements and expands" the service offerings for each credit union service provider, including payment processing, information technology, bill payment, cash services, core processing, and consulting services.
"For several years, we have talked about ways we could collaborate to gain efficiencies and reduce costs, so this union is a natural progression in our relationship," Kishbaugh said in a statement. "By combining PCSi's payment capabilities with ours, MY CU Services will be able to meet a greater range of client needs."
As payment volumes increase, MY CU Services said it expects the combined organizations to achieve greater economies of scale which, in turn, will help contain costs — which it said will be a "major benefit" for participating credit unions.
Brad Miller, president and CEO of Palmetto Cooperative Services, said, "The dynamic state of evolution in payments demands broad perspective and collaboration to ensure credit unions remain competitive and innovative in serving their members. This collaboration among CUSOs, corporates, and league service corporations — and the resulting strategic alignment — help ensure that the credit unions we collectively serve will stay ahead of the curve."
Kishbaugh said bringing the systems together will be done slowly.
"We are intentionally taking a measured, incremental approach to avoid inconveniencing clients," he said. "At the same time, we are excited about this opportunity because it will further expand our reach into the payments business and provide more growth opportunities. Combining our two organizations creates a powerful resource for credit unions along the Atlantic Coast."
Miller agreed: "Putting these companies together just makes good sense. It will help position MY CU Services more prominently and assure best-of-breed products and services for our collective clients now and well into the future," he said.
