ModernFi and Members Development Company Announce Partnership to Support the First Deposit Network for Credit Unions
ModernFi, the leading technology provider for deposit management, has partnered with Members Development Company (MDC) to create the first deposit network for credit unions. MDC, a network of 80 large credit union owners focused on accelerating credit union success, and ModernFi will offer the deposit network to all credit unions as a powerful tool to grow deposits and member relationships.
Deposit and member retention and growth have been urgent priorities for credit unions over the past year. High interest rates coupled with the banking turmoil in 2023 have left credit unions in need of new, innovative, and non-rate driven solutions to power growth and retention. While deposit networks have been utilized by banks for decades to address these needs, no dedicated network for credit unions has previously existed. ModernFi and MDC have partnered to bring long-overdue deposit network solutions to the credit union sector for the first time.
“MDC has always focused on its owners' success and the larger ecosystem. Simply put, the MDC-ModernFi deposit network is transformative for the industry,” said Jeff Kline, CEO of MDC. “We are incredibly excited to partner with ModernFi to bring these solutions to credit unions for the first time. The experience, collaborative nature, and technology that ModernFi provides will allow credit unions to be more competitive, serve new members, and accelerate their missions.”
Across the country, credit unions provide vital financial services to their members and communities. MDC is a research-for-development incubator for their owners and the broader credit union space. Leveraging the scale of their credit union owners with combined balance sheets of over $385 billion, MDC can deliver meaningful solutions to credit unions, their members, and the communities they serve. The MDC-ModernFi partnership comes on the heels of Rodney Hood, former Chairman of the NCUA, joining ModernFi’s board.
Through ModernFi's network, credit unions can grow, retain, and manage their deposit base by providing extended NCUA insurance* to attract and retain large-value members across businesses, higher-net-worth individuals, nonprofits, and public funds. Credit unions can also utilize the network to manage their balance sheet by sourcing funding on demand or sweeping excess liquidity. ModernFi’s solutions help credit unions strengthen their deposits, membership, relationships, stability, and, ultimately, their mission.
“We are grateful to support credit unions as they serve their 140 million members across the country, and we could not have found better partners than MDC for this collaboration,” said Paolo Bertolotti, CEO of ModernFi. “MDC brings a wealth of experience and expertise to the partnership, strengthening the deposit network that is quickly becoming foundational infrastructure for the sector. Our partnership with MDC reaffirms our commitment to the credit union mission, and we’re proud to support MDC and credit unions of all sizes and designations.”
The ModernFi and MDC partnership ensures the success of the deposit network for credit unions and promotes close collaboration between the organizations to drive value for the ecosystem. Moving forward, credit unions will be positioned to grow deposits and member relationships, serve new member types to further their mission, and improve the strength and stability of their institutions.
