Central 1 Credit Union to Phase Out Digital Banking Services
Vancouver, British Columbia – October 22, 2024
Central 1 Credit Union has announced its plan to discontinue its digital banking operations, with a strategy to assist clients in transitioning to alternative digital banking platforms.
Strategic Decision to Wind Down Digital Banking
Central 1’s digital banking division currently offers online and mobile banking solutions serving credit unions and various financial institutions. After conducting an extensive strategic review, the company concluded that continuing investments and innovations necessary to meet evolving client demands and sustain this service in the long term would be untenable.
Sheila Vokey, CEO of Central 1, stated, “The team carefully explored multiple strategic options, keeping the interests of our clients, stakeholders, and the organization at the forefront. While this is not the path we had hoped for, we are dedicated to ensuring a seamless transition to alternative digital banking providers for our clients.”
Ongoing Commitment to Core Services
Despite stepping back from digital banking, Central 1 reassures that it will maintain its pivotal role as an aggregator for credit unions and other financial service providers. Shelley McDade, Chair of Central 1’s Board, affirmed the institution’s ongoing dedication to delivering critical services including clearing and settlement, payments, and treasury functions.
Transition Timeline and Client Support
Central 1 is currently finalizing plans to facilitate a smooth client transition to new digital banking platforms. Although a definitive completion date has not been established, discussions with clients and digital banking providers aim for the full transition to take place within a three to four-year timeframe.
About Central 1 Credit Union
Central 1 Credit Union empowers credit unions and partner financial institutions across Canada by providing essential banking infrastructure. As of June 30, 2024, Central 1 manages assets worth $11.2 billion and supports over five million customers nationwide. Its services include payments, treasury management, and clearing and settlement operations, underpinning the credit union system’s financial health and growth.
Forward-Looking Statements Disclaimer
This announcement contains forward-looking information subject to risks and uncertainties. Statements regarding the winding down of the digital banking business, client transitions, and associated timelines are based on current expectations and management estimates. Actual outcomes may differ materially due to variables such as economic conditions, regulatory changes, technological developments, and other risk factors. Investors and stakeholders are advised not to place undue reliance on these statements, as Central 1 undertakes no obligation to update them except as required by law.
Contact Information
For further details, please reach out to:
Amanda LeNeve
AVP, Communications & Marketing
Central 1 Credit Union
Email: [email protected]
This announcement marks a significant shift in Central 1 Credit Union’s digital strategy, reflecting their commitment to prudent resource allocation while continuing to support credit unions across Canada through core financial infrastructure services.