The move aims to offer credit unions innovative technology, better services, increased scale and differentiated value, the companies said in a Monday (Nov. 6) press release.
Charles Fagan, CEO of PSCU, will lead the new organization.
“This is a transformative opportunity for both PSCU and Co-op,” Fagan said in the release. “We are excited to bring together our talented employees, complementary solutions, key partnerships and extensive client relationships — all under our shared commitment to the ‘people helping people’ credit union philosophy — to fuel growth and accelerate innovation for credit unions.”
“The speed of change continues to accelerate, along with the need to deliver more complex technology and solutions for credit unions and their members,” said Dean Michaels, president and CEO of Co-op. “We believe this combination will offer an unprecedented opportunity to meet the demands of the modern credit union member, enable agile technology development and provide the scale to help credit unions compete and win in the financial services market.”
During a press call, Fagan pointed to a renewed focus 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.
The merger is expected to be completed by the end of December, pending votes by both organizations’ owner/shareholder bases and other customary closing conditions. The operational integration will take place under a holding company, with headquarters in St. Petersburg, Florida.
The decision to merge with Co-op comes at a time when the payments landscape is rapidly evolving, and innovation and technology are reshaping the needs of the industry.
Denise Stevens, senior vice president and chief product and digital officer at PSCU, recently spoke with PYMNTS’ Karen Webster about how credit unions can meet the evolving needs of their members by personalizing services. She said budget-conscious customers are choosing financial institutions based on interest rates and their financial goals.
“Credit unions need to be super-focused on making sure they are competitive on price and flexibility,” Stevens said.