Blue Ocean or Stormy Waters? Buying Nix Check Cashing

Posted: 18 Feb 2010

See all articles by Peter Tufano

Peter Tufano

University of Oxford - Said Business School; National Bureau of Economic Research (NBER); University of Oxford - Said Business School

Andrea Ryan

affiliation not provided to SSRN

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

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

Peter Tufano (Contact Author)

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain
+44 (0) 1865 288551 (Phone)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain
+44 (0) 1865 288551 (Phone)

Andrea Ryan

affiliation not provided to SSRN

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