Central 1 Credit Union is to wind down its digital banking business and transition clients to one or more alternative digital banking providers.
Central 1’s digital banking unit provides online and mobile banking applications to credit unions and other financial institutions.
The decision to shut down the business follows a strategic review that concluded that the investment and innovation required to meet the needs of clients and sustain the company’s digital banking offering into the future would not be sustainable over the long term.
“The Central 1 team reviewed several strategic alternatives with deep consideration for our clients’, stakeholders’ and Central 1’s interests,” explaines Sheila Vokey, CEO of Central 1. “Though this is not the outcome we were striving for, our team is committed to supporting our clients through a smooth transition to an alternative digital banking solution.”
The decision does not impact the company's core business in clearing and settlemetns, payments and treasury she emphasises.
Central 1 is working with digital banking providers and clients to complete transitions within a three to four year timeline.