Nutmeg's new 'CUSO' buys Colorado-Based Professional Service and Technology Vendor
Rocky Hill's Nutmeg State Financial Credit Union has acquired a Colorado data-services vendor to credit unions in a bid to harness more technology to provide new and varied financial and other services to recruit and retain members.
Nutmeg and DaLand Solutions, of Aurora, Colo., with whom the $450 million-asset credit union has been a data-technology customer since 2015, jointly announced Wednesday their transaction. Financial terms were not disclosed.
One of Connecticut's largest credit unions with some 39,000 members, Nutmeg recently was approved by state bank regulators to operate a credit-union services organization, or CUSO. A handful of CUSOs exist in the state, providing their members and other credit unions with digital hardware and software support for automated teller machines, wire money transfers, account settlements and statements, among other services.
The CUSO designation also was key to Nutmeg procuring its contract with the state Department of Motor Vehicles, providing driver's license renewals at its new and existing branches in New Haven County. Nutmeg's second DMV Express location opened last week in Milford.
With the DaLand purchase, Nutmeg Executive Vice President Jeff Levesque assumes right away DaLand's chief executive officer reins from co-founder Jon Ungerland, who is its chief operating officer. DaLand co-founder Dan Micale is now chief relationship officer. DaLand has 15 full-time and five part-time staffers, many of whom are telecommuters based around the country, Levesque said.
"We wouldn't have made this move if we didn't believe we can have a significant impact on the credit union movement," Levesque said. "We have the right team and the right tools in place to make a real difference."
Nutmeg officials say they connected with DaLand when the credit union was choosing a new core processing platform. The two organizations have undertaken many joint projects since.
"The relationship between our two organizations quickly grew from a mere client/vendor relationship to one of a partnership in the truest sense of the word," Nutmeg CEO John Holt said in a statement.
Holt says the goal is for DaLand to become an even bigger influence in the credit union marketplace.
Micale said teaming with Nutmeg exposes DaLand to resources it could not have accessed otherwise.
"My partner Jon Ungerland and I both have strong credit union roots," Micale said. "We've always considered DaLand as more than just another credit union vendor. When Nutmeg approached us about becoming a CUSO, it made perfect sense as the next logical step for our company."
DaLand services team is comprised of three groups: project management, which manages many different types of technology implementations; brokerage, which handles core, electronic funds transfer, and other technology searches; and enterprise services, which develops software and custom technology solutions.