Canada’s Central 1 announces plans to wind down its digital banking business
Central 1, a Vancouver-based software provider to credit unions in Canada, has announced plans “to wind down its digital banking business and transition clients to one or more alternative digital banking providers”.
Central 1 to wind down digital banking business
The company’s digital banking unit supplies online and mobile commercial, business and retail banking applications to credit unions and other financial institutions. The technology underpinning it is provided by Backbase. The deal was signed in 2017 and was the first one in Canada for the Dutch vendor.
In a statement, Central 1, which also provides solutions for critical payments, clearing and settlement, and treasury services, says the decision to wind down the unit “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”.
Sheila Vokey, CEO of Central 1, says: “The Central 1 team reviewed several strategic alternatives with deep consideration for our clients’, stakeholders’ and Central 1’s interests.
“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 says “no firm date” has been set for completing this transition, but adds that it is currently working with digital banking providers and clients to “complete transitions within a three to four year timeline”.
Shelley McDade, Board Chair of Central 1, says the company “remains committed to continue being an aggregator for credit unions and other financial service providers for the clearing and settlements, payments and treasury”.
