CO-OP Financial Services and FSCC Announce Intent to Combine Shared Branching Services
CO-OP FINANCIAL SERVICES AND FSCC ANNOUNCE INTENT TO COMBINE SHARED BRANCHING SERVICES
Unified Operations Provides Shared Branching to 1,700 Credit Unions With More Than 4,300 Branch Locations and 2,200 Vcom® Kiosk Locations at 7-Eleven Stores
RANCHO CUCAMONGA, Calif. (September 20, 2011) – CO-OP Financial Services and Financial Service Centers Cooperative, Inc. (FSCC) announce that the Board of Directors of the two companies have approved a letter of intent to combine operations, unifying credit union shared branch services.
The two companies expect the combination of shared branching services to not only provide a significant expansion of outlets for credit union members, but also greater efficiencies in branding, technology and administrative costs that can be redirected to more competitive pricing and enhanced patron dividends for network participants.
Between the two companies, more than 1,700 credit unions nationwide participate in shared branching, making more than 4,300 physical branch locations available to their members, plus 2,200 Vcom® kiosk locations at 7-Eleven stores. The network allows members to conduct financial transactions as if they were visiting a branch of their own credit union.
Under the terms of the agreement, FSCC President/CEO Sarah Canepa Bang will join CO-OP as President and COO of FSCC, and as Chief Strategy Officer of CO-OP Shared Branching. CO-OP and FSCC expect the transaction to close within 120 days.
“I am excited for the credit union movement as this combination will advance the vision of FSCC to have every branch of every credit union an outlet,” said Bang. “There’s no denying that FSCC and CO-OP have been terrific competitors – imagine what we can do together. CO-OP and Stan Hollen personally played an historic role in the creation of FSCC, and now with the combining of the two companies, it is very much a case of our business coming to a logical full circle.”
“The combination of CO-OP and FSCC will blend the strengths and value of both companies, creating a more tightly integrated and efficient shared branching network for our movement,” said Stan Hollen, President/CEO, CO-OP Financial Services. “With more than 4,300 branch locations, credit unions have at their disposal the fourth largest network in the country, behind the three largest national banks. This truly enables credit unions to compete and win against banks in terms of the access and convenience they can offer their members.”
“We are looking forward to Sarah Canepa Bang and her team joining CO-OP and to the critical role she will play in working with all shared branching leadership to develop and move a unified strategy into the future,” said Hollen.
FSCC was created in 1990 and originally operated under a management agreement with CO-OP Financial Services (then known as CO-OP Network). In 1999, as Chairman of the Board of FSCC, Hollen hired Bang as President/CEO.
CO-OP Financial Services entered the shared branching arena in June 2002 with the acquisition of Service Centers Corporation (SCC). In July 2007, CO-OP and Credit Union Service Corp. (CUSC) agreed to combine operations, now offered under the CO-OP Shared Branching brand.
For more information on FSCC, please visit www.fscc.com, and for CO-OP Financial Services, visit www.co-opfs.org.
About FSCC (Financial Service Centers Cooperative, Inc.)
About CO-OP Financial Services