BIRMINGHAM, Ala. – In 2011 “weak” corporates will merge out and in 2012 those relying on providing pass-through services will fall by the wayside.
That’s the prediction of Thomas Bonds, CEO of Corporate America CU here, who believes five to seven corporates will be consolidated in 2011, leaving those “trying to hold on with their fingernails to the pass-through mentality” to disappear in 2012.
“You will be left with something over a period of three to four years akin to regional corporates. But unfortunately, some of those regional corporates will be exclusively payments system providers charging higher prices.”
Bonds believes the successful corporate business model is still going to be – in spite of NCUA’s regulations – one that provides both payment systems, as well as liquidity services and investment products. “And when I say investment I don’t mean brokerage. I mean storage of excess liquidity offering a fair rate of return.”
Additional insights by Bonds and others will be featured in Credit Union Journal’s Jan. 3 2011 Look Ahead issue.
