ARLINGTON, Va., and RANCHO CUCAMONGA, Calif. (12/16/11)--The National Credit Union Administration (NCUA) has approved CO-OP Financial Services' plans to purchase the online and mobile bill pay services of Corporate Network eCom LLC, a subsidiary of U.S. Central Bridge Corporate FCU.
NCUA selected CO-OP as a result of a competitive bidding process for U.S. Central Bridge operations conducted in October. CO-OP, based in Rancho Cucamonga, Calif., is a cooperative of more than 3,000 credit unions across the country. eCom is based in Lenexa, Kan.
"Today's action is another important step toward the goal of winding down U.S. Central Bridge," said NCUA Board Chairman Debbie Matz. "In implementing the corporate resolution plan, NCUA has successfully continued payment services to consumer credit unions without interruption, and managed to the lowest possible long-term cost. The selection of CO-OP is also consistent with our preference, wherever feasible, to find solutions within the credit unions' system. This deal achieves all of these objectives."
Stan Hollen, president/CEO of CO-Op noted that "the bill pay services of eCom are a perfect extension of the e-commerce business line of CO-OP Financial Services, which already includes the online CO-OP Bill Pay and advanced CO-OP Mobile banking solution. The transition of eCom services to CO-OP is so complementary that eCom clients will not need to change payment processing platforms as a result of the ownership change.
Hollen noted that CO-OP will provide "the same high level of service eCom clients have always received for bill pay" which will help "all of our clients compete even more effectively in the future against banks in terms of access and convenience services they can offer their members."
All eCom employees will become employees of CO-OP Financial Services and continue to service eCom online and mobile bill pay clients. eCom, located in Lenexa, Kan., was founded in 1999. Today more than 750,000 credit union members use at least one of its three electronic bill payment solutions. The flagship MemberPayPlus enables members to receive, view, manage and pay all of their bills from a credit union website.
U.S. Central was placed into conservatorship by NCUA in March 2009.
CO-OP expects to complete the purchase within 90 days. For more information, use the link. Going forward, CO-OP will communicate directly with eCom's clients about the transition process, said NCUA. For more information, use the link.