Blue Ocean or Stormy Waters? Buying Nix Check Cashing
Posted: 18 Feb 2010
Date Written: July 31, 2009
Abstract
Kinecta Federal Credit Union has the opportunity to purchase Nix Check Cashing as part of their "blue ocean" strategy to reach the financially underserved and increase credit union membership and deposits. But they face financial as well as reputational risk. Check cashing, payday lending and other alternative financial services are maligned in mainstream financial circles. This case asks students to evaluate both organizations, their respective industries, and the proposed $45 million deal and determine whether or not it makes sense for Kinecta to purchase Nix.
Suggested Citation: Suggested Citation
Tufano, Peter and Ryan, Andrea, Blue Ocean or Stormy Waters? Buying Nix Check Cashing (July 31, 2009). HBS Case No. 210-012, Harvard Business School Finance Unit, Available at SSRN: https://ssrn.com/abstract=1551950
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