CUSG Expands Risk & Compliance Solutions; Digital FCU Now Offers Payrailz

Two financial technology announcements within the credit union community focus on gaining a comprehensive risk management and compliance solution; and full suite and single platform of smart payment services.

Livonia, Mich.-based CU Solutions Group, a technology, marketing and HR performance management CUSO, announced majority ownership procurement of credit union sector rights to Frederick, Md.-based AffirmX’s risk management and compliance solutions.

As part of the agreement, CUSG, in conjunction with state credit union leagues, will expand and enhance the delivery of AffirmX’s compliance offerings. The transaction is targeted to close by March 31, 2019.

AffirmX currently serves more than 120 credit unions nationwide with bundled and unbundled compliance risk assessment tools and services including enterprise risk management, fair lending and cybersecurity risk assessments; regulatory compliance monitoring; IT risk and vulnerability; loan review services; internal audit outsourcing; vendor management; and ADA compliance.

Several state leagues and associations already distribute and support AffirmX solutions, including the Mountain West, Maryland & DC, New York, Connecticut, Dakotas, New Jersey and Indiana associations as well as the National Coalition of Firefighters Credit Unions and the Education CU Council. This new alliance seeks to expand that network of association partners and build on AffirmX’s success in the marketplace.

Ken Wolff, CEO of AffirmX, said. “With the addition of these new relationships, and further leverage of our existing ones, and their vast knowledge base, content and distribution networks, we hope to ease the burden of regulatory change management for the credit union community nationwide and look forward to a powerful and effective partnership for years to come.”

CUSG, which provides solutions to more than 3,400 clients nationwide, plans to leverage its existing product suite and client base to coordinate enhancements and additions to the AffirmX Governance, Risk and Compliance suite.

“Providing credit unions with regulatory compliance tools and consulting has long been a core business for state leagues and associations,” Dave Adams, president/CEO of CU Solutions Group, said. “In cooperation with League InfoSight and CUNA, CUSG has been at the forefront of enabling these leagues to have the investment, sales and support opportunities necessary to provide top-notch technology and service to member credit unions in this area. This transaction will further expand those opportunities.”

As part of this transaction, CUSG and co-investor leagues will have exclusive and perpetual license to the patent, code, contracts and intellectual property for all AffirmX solutions in the credit union sector. In turn, CUSG will contract with AffirmX to service current and future contracts and to partner in future product development.

In a separate announcement: the $8.5 billion Marlborough, Mass. Digital Federal Credit Union, a top 20 credit union nationwide, will now offer Glastonbury, Conn.-based digital payments company Payrailz’s full suite and platform of payment services.

Through this partnership, DCU’s more than 700,000 members through the U.S. will have access to a single platform for bill pay, bill negotiation, P2P and A2A services delivered across all access points. Half of its members do not use a DCU branch and instead access accounts digitally, over the phone, at ATMs or at shared branch locations.

“We value simplifying our member’s lives by providing the best services to them and creating the best experiences for the more than 500,000 digital payments and transfers that happen each month,” Gereen Langmeyer, manager of digital channels at DCU, said.

Payrailz believes the industry is ready for a “do it for me” solution to better manage their payment needs and has built a powerful engine driven by predictive and proactive smart technology to create value added experiences.

“DCU fully embraces the current and future needs of its members, and we eagerly wait to see it build on its already solid industry reputation by having yet another tool at its disposal to better serve its members.” Fran Duggan, CEO of Payrailz, said.

Digital Federal Credit Union has an in-house innovation department dedicated to mobile and online banking development and partnered with Payrailz to leverage its modern technology infrastructure to gain specialized expertise in payments, including its sophisticated smart payments routing, artificial intelligence and real-time payments capability with a focus on adding value throughout the member’s payment experience.