Official Statement from Engage fi on the PSCU and Co-op Merger

 

Engage fi acknowledges the significant announcement of the merger between PSCU and Co-op, two leading CUSOs with a proud legacy exceeding 40 years of service. This strategic decision is reflective of the industry's current trajectory towards scaling up, streamlining efficiencies, and bolstering the range of tools available to credit unions, with a core focus on elevating the member experience.

In an era of our industry's inclination toward consolidation, highlighted by the merger of CUNA and NAFCU, we believe today’s announcement to combine PSCU and Co-op is in stride with market trends. Engage fi is uniquely positioned to help clients take advantage of the many anticipated opportunities resulting from this merger, while avoiding the potential challenges that may occur within the payments landscape.

Advantages:

  • Enhanced Services: The synergy of PSCU and Co-op is expected to bring forth an expanded suite of innovative payment solutions that will better serve credit unions and their members with added value.

  • Cost Efficiencies: With the potential for a larger scale operation, the merged entity may have greater bargaining power and could deliver more competitive pricing strategies, which translate into cost reductions for credit unions and their members.

Challenges:

  • Limited Competition: The consolidation of significant industry players will lead to a less competitive environment, potentially diminishing the breadth of choices and possibly escalating costs for credit unions.

  • Increased Dependence: A more concentrated market means credit unions may grow more dependent on this single entity, which may affect negotiating power and service quality.

While we recognize the prospects of enhanced market consolidation and the potential for improved economies of scale, we are also cognizant of the potential for reduced competition and its ramifications. The true measure of success for this merger for our clients will hinge on the seamless integration of both firms' platforms, operational procedures, technological advancements, and enhanced member experience.

Engage fi is committed to vigilant oversight of the developments ensuing from this merger. Our priority is to provide all our clients with market education and advisement, thereby ensuring they are well-equipped to navigate the evolving payments ecosystem. We remain steadfast in our mission to support our clients as they adapt to these changes, ensuring their interests remain safeguarded and their service offerings continue to advance.

 

For further insights and advisement on how this industry-shaping merger may affect your credit union, stay connected with Engage fi.

 

Jenn Signature-1                                           Andres Sig

Jenn Addabbo                                                                     Andres Pasantes

CEO & Co-Founder                                                              President & COO