VIENNA, Va.–Navy Federal Credit Union has been selected by the Department of Defense to provide banking services on U.S. military bases overseas, displacing Bank of America, which has held the contract for 40 years.
Effective in April, Navy Federal will begin filling the contract to operate some 60 branches and 275 ATMs on bases in Europe and the Pacific for the next 10 years.
While Navy Federal, which is by far the world’s largest credit union with $165-billion in assets, 13-million members and more than 350 branches, has won the contract, numerous other credit unions already have a presence on numerous U.S. military bases. CUToday.info was told by several sources who requested anonymity that those CUs are “concerned” over what the Navy Federal presence is going to mean.
Navy FCU’s FOM is open to all active and retired personnel across all branches of the military.
Contract Size Not Disclosed
Navy Federal did not disclose the size of the contract, which will begin with a one-year transition period, followed by a base year and then eight additional one-year options, according to the Business Journal. The branches will continue to operate under the name The Community Bank, but this time as a division of Navy Federal Credit Union, not Bank of America. The Community Bank website includes an update on the change.
According to the Washington Business Journal, Navy Federal won the contract after BofA opted not to bid on it when it was put up for renewal. BofA declined to comment to the publication on why it chose not to again bid to provide the services, but did say it currently maintains nearly 100 financial centers near U.S. military installations.
‘Core of Mission’
"Supporting active-duty personnel and their families, wherever they are stationed, is at the core of Navy Federal's mission," Mary McDuffie, Navy Federal’s president and CEO, said in a statement. "We appreciate the trust the Department of Defense has placed in Navy Federal's ability to fulfill this mission."
Additional information on the contract can be found here.
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