Representatives of 13 corporate credit unions and Co-op Financial Services have abandoned efforts to buy the payments functions from U.S. Central Federal Credit Union, the latest corporate initiative to fail, the representatives announced Sept. 2.
Instead, the group said it would continue to work cooperatively to create partnerships that will allow the uninterrupted flow of payments products and services to the credit unions that receive them.
“The efforts to organize an ongoing corporate credit union to acquire U.S. Central Bridge operations was an effort that needed to be explored, but it has been determined that partnering with leading vendors within the payments industry is the appropriate course of action at this time,” said Brandt Peterson, executive vice president at SunCorp Federal Credit Union and a member of the organizing council. “Our primary goal always has been to ensure continuity of services to participating credit unions. We are much closer to a solution that will meet the needs of credit unions both in the short term and well into the future. The most important message for participating credit unions is that our solution will ensure minimal disruption to credit unions.”
The companies participating in the payments initiative are include Alloya Corporate Federal Credit Union, Catalyst Corporate Federal Credit Union, CenCorp, Corporate One, FirstCorp, Kansas Corporate, Kentucky Corporate, Missouri Corporate, SunCorp, Southeast Corporate, The Members Group, TriCorp, VolCorp, Western Bridge Corporate Federal Credit Union and Co-op Financial Services.
The failure of the payments cooperative comes after WesCorp Federal Credit Union and Southeast Corporate Federal Credit Union have failed to raise enough capital to restructure under National Credit Union Association’s new corporate rules and are now seeking merger partners.
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