ONTARIO, Calif. (9/2/15)--The Hawaii Credit Union League is purchasing a shared-ownership stake in Plexcity, an Ontario, Calif.-based company that provides information technology, accounting/finance and human resource solutions.
“Our newest addition immediately decreases expenses for every association we service, which contributes to their future stability,” said Tony Kitt, Plexcity CEO. He noted that the company’s shared-owners believe they are better at driving down costs together than individually.
The move is another signal the company’s cooperative model in shared back-office resources is gaining momentum among state-level credit union trade associations, Kitt said.
Lowering expenses is one of several reasons the league is buying into and using Plexcity, said league President/CEO Dennis Tanimoto. “We’ve been telling our credit unions that collaboration is one of the best ways to survive and thrive in the foreseeable future, so we wanted to lead by example. We also felt there would be higher return on our members’ investment in us as a league.”
He added that Plexcity’s solutions will mean higher economies of scale, eliminate redundancies, allow speedier and more efficient operations through a cloud-based portal, and help the league direct its full attention to serving member credit unions and “the issues that matter to our credit unions.”
The league is the fourth association to become an owner. Three existing owners who founded Plexcity include the California and Nevada Credit Union Leagues, the New Jersey Credit Union League, and the Maryland-D.C. Credit Union Association. Plexcity also serves one non-owner client, the National Association of State Credit Union Supervisors.