$1.2B LFCU To Switch
SACRAMENTO, Calif. Lockheed FCU, one of the nation's largest credit unions with more than $1.2 billion in assets, has applied to state regulators with the Department of Financial Institutions (DFI) to convert to a state charter. The Burbank-based institution would be the third billion-dollar credit union in the Golden State to make the switch in the past two years. Separately, the DFI said it approved the conversion of Water & Power FCU back to state charter as Water & Power Community CU, six years after the Los Angeles-based credit union made the switch to federal charter.
Dig. Insight Buys VIFI
CALABASAS, Calif.- Digital Insight, which provides Internet-based solutions to numerous credit unions, announced an agreement last week to acquire Virtual Financial Services, Inc. (VIFI), Indianapolis, which provides Internet banking services to some 425,000 members and customers of more than 150 financial institutions. Digital Insight said it will pay a combination of Digital Insight common stock, $3.75 million in cash and a promissory note for $3.75 million based on a $51-million total enterprise value. The privately held VIFI was founded by David Becker, who remained its chairman at the time of the sale. Becker is also president of re:Member Data, Indianapolis, which provides data processing solutions to credit unions.
"The acquisition of VIFI further expands Digital Insight's scale and commitment to credit unions. This acquisition will benefit all of our clients as it enables us to invest in products and services and benefit from increased market presence and efficiency," said Dale Walker, Digital Insight's president and chief operating officer.
Texas CUs Seek Larger FOMs
AUSTIN, Texas - The state CU Department has approved an application from Southeast Affiliated Federal Employees CU in Beaumont to serve more than 150,000 people who work, worship or live in the city of Beaumont. The state regulator also approved a request from United Heritage CU in Tyler to serve the 100,000 people who work, live or worship in the city of Tyler. Also approved was an application from Southwest 66 CU in Odessa to serve the 150,000 residents of Ector County.
P2P E-Mail Money Transfers
TORONTO - CertaPay Inc., a software company, will introduce a person-to-person, e-mail money-transfer service throughout Canada in early 2002 which will involve four of Canada's five largest banks. An alliance between CertaPay and ACI Worldwide, an Omaha, Neb., developer of Base24, is making it possible for the launch of CertaPay's P2P service. Banks worldwide use Base24, a software platform, for credit, debit and automated teller machine transactions. The alliance creates a framework for banks to adopt person-to-person payments because CertaPay's processing software is now compatible with ACI's Base24.
Bank Pays Cardholder Dividend
TORONTO - Canadian Imperial Bank of Commerce, Canada's largest VISA issuer, will pay out more than $30 million this year to CIBC Dividend and Dividend Platinum VISA cardholders. The payouts, which will appear on cardholders' statements as credits, will be completed in January.
The amount of each cardholder's credit is determined by how many points he or she accumulates through a year's worth of purchases. CIBC began issuing the two cards in 1998. This is the fourth year for the payout.