Corporate One FCU has agreed to merge its successful SimpliCD brokerage program into a new CUSO organized by 28 other corporates and U.S. Central Credit Union that will broker CDs to natural person credit unions.
Under the deal, Corporate One will sell the wholly owned CD broker to Corporate Exchange and the broker, which currently provides CD services to more than 1,600 credit unions, will retain the name of SimpliCD. Corporate One will continue to administer the program out of its Columbus, Ohio, and Columbus, Indiana, offices and will get a seat on the board of the new CUSO.
Officials with Corporate One said they agreed to share the successful program with the corporate system in order to expand the distribution network. "Our vision all along has been to expand it to as many credit unions as possible, to have as wide a distribution as we can," said Paul Hixon, spokesman for SimpliCD.
How The Program Works
Under Corporate One, SimpliCD is sold through 16 corporate agents. The program, founded in 1996, has proven so successful it has grown to almost $3.4 billion in assets, more than twice the size of the corporate parent.
The new program will make the 29 corporate owners of Corporate Exchange, as well as Mid-West Corporate FCU, of South Dakota, agents for the program for natural person credit unions. Natural person credit unions must go through their corporate to participate, according to Hixon.
The merger has been approved by the boards of both Corporate One and Corporate Exchange and the effective date is targeted for Aug. 31.
No regulatory approvals are required.
