EDS Credit Union Services, with an eye toward expanding its market share in Nevada, has assumed operation of the state credit union league's information systems.
Under an agreement, the unit of Plano, Tex.-based Electronic Data Systems Inc. will take over all technology services the Nevada Credit Union League and Affiliates has been providing to its members.
The league, which has endorsed EDS systems since 1975 and began supplying EDS check-processing services in 1990, will continue to handle marketing and customer service.
Already 20 of Nevada's 34 credit unions used EDS, a unit of General Motors, for their deposit and loan accounting systems. By increasing convenience and offering new services, such as remittance processing and credit and debit cards, EDS is hoping more credit unions will sign on.
|More Cost Effective'
"By expanding to product offering and supplying the services all at once instead of one at a time, we're making things more cost effective for credit unions," said Albert Ku, EDS product manager.
Since the agreement went into effect July 1, EDS has installed new hardware and personal computers, as well as a new telephone system, at the league's Las Vegas headquarters.
The league may not be one of the biggest in the country, but its 34 credit union members have $1.4 billion in assets.
Mr. Ku wouldn't say what sort of income EDS or the league expect to bring in through the venture, but he did say, "It's a significant piece of new business."
This relationship is the first of its kind, Mr. Ku said. Discussion of starting such a service dates back to July 1992.
EDS hopes to enter into similar alliances with other state credit union leagues, but it has no definite schedule as of now, Mr. Ku said.
"We haven't gone knocking on anyone's doors," Mr. Ku said.
