NCUA to Shut Down U.S. Central Bridge Payment Services

Friday, December 23, 2011 10:31:00 AM

ALEXANDRIA, Va. – NCUA announced Thursday that other than the purchase of the services of Corporate Network eCom, LLC, (eCom) by CO-OP Financial Services, the bidding process for the payment services (ACH, APEX, auto settlement) offered by U.S. Central Bridge Corporate Federal Credit Union (U.S. Central Bridge) did not result in the selection of any additional acquirers. NCUA will move forward with plans for an orderly wind-down of the other U.S. Central Bridge services in 2012.

NCUA Board Chairman Debbie Matz said in a statement: “The proposals we received from other bidders did not meet NCUA’s responsibility to minimize service disruptions and impose the lowest possible cost.”

According to the agency, each corporate credit union, if it has not already done so, now needs to begin the process of transferring to a vendor that will replace U.S. Central Bridge’s APEX system in order to continue uninterrupted payment services to member credit unions.

Another critical function of U.S. Central Bridge is serving as the agent group representative to facilitate credit union access to the Central Liquidity Facility (CLF). According to NCUA, due to U.S. Central Bridge’s ownership of $1.9 billion of CLF stock, all credit union members of corporates can access the CLF for liquidity purposes.

No timeline was given for the “wind down.”

For NCUA’s full release, click here.

Comments

Comments are closed on this post.