VANCOUVER, British Columbia, Oct. 22, 2024 (GLOBE NEWSWIRE) -- Central 1 Credit Union (Central 1) today announced its intention to wind down its digital banking business and transition clients to one or more alternative digital banking providers.
Central 1’s digital banking business provides online and mobile banking applications to credit unions and other financial institutions. The decision follows a comprehensive strategic review of this business, concluding 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,” explained 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.”
“Central 1 remains committed to continue being an aggregator for credit unions and other financial service providers for clearing and settlements, payments and treasury services,” said Shelley McDade, Board Chair of Central 1.
Central 1 is currently completing the necessary planning to support clients to smoothly transition to other provider(s). While no firm date has been set for completing this transition, Central 1 is working with digital banking providers and clients to complete transitions within a three to four year timeline.
About Central 1: Central 1 cooperatively empowers credit unions and other financial institutions who deliver banking choice to Canadians. With assets of $11.2 billion as of June 30, 2024, Central 1 provides critical payments, treasury and clearing and settlement services at scale to enable the credit union system. We do this by collaborating with our clients, developing strategies, products, and services to support the financial well-being of their more than five million diverse customers in communities across Canada. For more information, visit www.central1.com.
Caution Regarding Forward Looking Statements
This press release and announcement contains historical and forward-looking statements. All statements and other information about anticipated future events may constitute “forward-looking information” under Canadian securities laws. These include, without limitation, statements relating to Central 1’s intention to wind down its digital banking business, and the timeline and processes relating to the same, Central 1’s plans to transition its clients to alternative digital banking providers, as well as statements that contain the words “may,” “will,” “intends” and “anticipates” and other similar words and expressions.
Forward-looking information are or may be based on assumptions, uncertainties, and management’s best estimates of future events. Central 1 has based the forward-looking statements on current plans, information, data, estimates, expectations, and projections about, among other things, results of operations, financial, condition, prospects, strategies and future events, and therefore undue reliance should not be placed on them. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made. Actual results may differ materially from those currently anticipated. Securityholders are cautioned that such forward-looking statements involve risks and uncertainties. Certain important assumptions by Central 1 in making forward-looking statements include, but are not limited to, competitive conditions, economic conditions and regulatory considerations. Important risk factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include economic risks, regulatory risks (including legislative and regulatory developments), risks and uncertainty from the impact of rising or falling interest rates, information technology and cyber risks, environmental and social risk (including climate change), digital disruption and innovation, reputation risk, competitive risk, privacy, data and third-party related risks, risks related to business and operations, risks relating to the transition of clients to alternative digital banking providers, and other risks detailed from time to time in Central 1’s periodic reports filed with securities regulators. Given these risks, the reader is cautioned not to place undue reliance on forward-looking statements. Central 1 undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws.
Contact
Amanda LeNeve
AVP, Communications & Marketing
Central 1
E aleneve@central1.com
