Credit union service organizations PSCU and Co-op Solutions say they’ve closed their agreement to combine.
Beginning Tuesday (Jan. 2), the two groups will integrate under a holding company led by a combined executive leadership team and board of managers, with Chuck Fagan, formerly president and CEO of PSCU, acting as CEO of the new organization.
A new brand for the group — for now going by PSCU/Co-op Solutions — will be announced in the coming months, the organizations said in a news release provided to PYMNTS.
“Today marks the start of an exciting journey as we bring together two teams with similar values and cultures — both built on the foundation of the ‘people helping people’ credit union philosophy — to begin working collaboratively as associates of our new combined company,” Fagan said.
“Through this combination, we are establishing an enhanced, end-to-end product portfolio — ranging from access to instant payments and data analytics, digital banking, fraud and risk management, contact center solutions and services, an ATM network, shared branching, collections and more — to help credit unions innovate and achieve their goals, while also providing increased scale, meaningful value and additional growth opportunities.”
PSCU and Co-op announced their plans to merge in November. At the time, Fagan pointed to a renewed emphasis on data in transforming payment experiences.
“I think we’re both on the cusp of really realizing what data can mean in terms of the interactions with members … utilizing a lot of that data to help credit unions position for deeper engagement around what we truly believe is what defines that primary financial institution, that is payments in the digital experience,” Fagan said.
And that’s important, considering that — as PYMNTS wrote last month — credit unions (CUs) are known more for their personalized and member-focused services than the digital innovations found at rivals like FinTechs or digital-only banks.
And being behind on digital innovations puts CUs at risk of losing members, with 27% of consumers saying they would leave their financial institution to go to one that offered more innovative products.
That’s according to “Credit Union Innovation: Staying Ahead Through Payments Innovation,” a PYMNTS Intelligence/PSCU collaboration.
“A lot of financial institutions have pulled back a little bit on innovation, kind of taking that wait-and-see approach,” PSCU Chief Growth Officer Brian Scott said. “And I’d say just the opposite. Now is a great time to double-down on the innovation.”
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