The Credit Union Journal
The National Credit Union Administration has approved one of the largest field-of-membership grants ever in order to let Kinecta Federal Credit Union in Manhattan Beach, Calif., serve the five million Californians surrounding the chain of check cashing outlets it just bought.
The NCUA grant will facilitate the conversion of the 55 Nix Check Cashing outlets to full-service credit union branches, tripling the $4 billion-asset credit union's branch network.
Kinecta announced Wednesday that it had closed the $45 million deal, the biggest ever by a credit union acquiring a check cashing operation. Nearby Wescom Credit Union bought a check cashing operation with eight outlets this year.
"We will now be able to offer the opportunity of becoming a Kinecta Federal Credit Union member/owner to all of the Nix customers who live, work, or worship in the geographic areas around the Nix branches," said Kinecta president and chief executive officer Simone Lagomarsino.
The credit union plans to change name of the check cashing chain to Kinecta Alternative Financial Solutions.
