News

Co-op buys stake in financial services software firm

August 27, 2013

Co-op Financial Services is purchasing a minority stake in Finivation, a provider of systems integration and software development for credit unions and community banks. According to a Co-op press release, the deal strengthens the companies' existing partnership in Web and mobile app development, and related middleware to connect hosts and acquirers.

"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 and CEO of Co-op Financial Services. "With Finivation, we can continue to leverage our own technology to rapidly innovate to serve credit unions.

Finivation has played a key role in the development of the Credit Union Financial Exchange, an open standard for efficient systems integration in the credit union ecosystem. Launched by the CUNA Technology Council in early 2012, CUFX works to reduce the time required for systems integration, allowing the quick launch of new solutions. 

Finivation will continue in its role of maximizing connectivity to support emerging Co-op product lines and build applications that serve Co-op-allied credit unions and their members. Finivation and Co-op will also collaborate on a middleware solution to 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 Brian Bodell, CEO of Finivation. "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."

The companies are not disclosing specific terms of the ownership deal.

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