RANCHO CUCAMONGA, Calif. (8/27/13 UPDATED 1:50 p.m. CT)--CO-OP Financial Services will become a minority owner of Finivation, a move to strengthen an existing technical partnership for Web and mobile application development and middleware that connect hosts and acquirers for emerging CO-OP products.
"CO-OP is investing in the latest solutions and technologies that make it more convenient for members to do business with their credit unions," said Stan Hollen, president/CEO of CO-OP Financial Services. "Developing digital payment channels is essential in today's market. With Finivation, we can continue to leverage our own technology to rapidly innovate to serve credit unions.
"Finivation is deeply committed to the needs of the credit union movement as it already counts many large credit unions as clients and through its work with the CUNA Technology Council," said Hollen.
The New York City-based Finivation played a key role in the development of the Credit Union Financial Exchange (CUFX), an open standard for efficient systems integration in the credit union ecosystem. Launched by the CUNA Technology Council in early 2012, the goal of CUFX is to reduce the time required for systems integration so credit unions can quickly launch new solutions for their members.
CO-OP has long established payments standards for financial transactions switching and settlement in both ATM/point of sale and shared branching. CO-OP intends to fully support CUFX for information exchange.
Finivation's primary role in CO-OP product development will continue to be maximizing efficient connectivity to support emerging product lines and building adaptive applications that serve CO-OP's credit unions and their members. Finivation and CO-OP also will work together to build a middleware solution that will serve technology providers, payment processors and credit unions.
"We have worked essentially as an internal partner in conjunction with CO-OP's highly innovative product development team, so welcoming CO-OP into our ownership is a natural extension of the existing relationship," said Finivation CEOBrian Bodell.
"In addition to CO-OP products, Finivation will serve our current clients and partners and, with CO-OP's support, we plan to expand our presence assisting credit unions, other financial institutions and technology providers," said Bodell.
The companies did not disclose the specific terms of CO-OP's minority ownership of Finivation.