ModernFi Announces the Formation and Funding of ModernFi CUSO to Support Credit Union Deposit and Member Growth
With funding led by Curql Collective and Members Development Company (MDC), ModernFi CUSO is focused on supporting and scaling the first deposit network for credit unions, ensuring credit unions can continue to grow and thrive while having direct ownership in their foundational infrastructure
ModernFi, the leading technology provider of deposit management for financial institutions, is proud to announce the formation and funding of ModernFi CUSO, a credit union service organization (CUSO), to support and scale the first deposit network for credit unions.
As a CUSO, an entity partially owned by credit unions and exclusively serving credit unions, ModernFi CUSO reaffirms ModernFi’s commitment to support the credit union ecosystem and its ethos of people helping people. As the first deposit network for credit unions, ModernFi is dedicated to providing foundational infrastructure to credit unions, supporting their mission to serve new and existing members. Through ModernFi CUSO, credit unions can utilize a dedicated deposit network and reciprocal deposits for the first time, representing a major breakthrough for the sector.
The funding and formation of ModernFi CUSO was led by Curql Collective and Members Development Company (MDC) with participation from ModernFi’s existing investors Canapi and Andreessen Horowitz. Rodney Hood, former chairman of the NCUA, continues to serve on ModernFi’s board. ModernFi's partnership with Curql and MDC represents a significant alignment with two of the most influential forces in the credit union industry. MDC, a research for development consortium of more than 80 large credit union owners, and Curql, a collective of more than 120 credit unions jointly investing in financial technology, bring a wealth of industry experience and resources to support ModernFi CUSO.
Rodney Hood, former chairman of the NCUA, shared, “ModernFi stands as the foremost company in the market with regard to liquidity.” Nick Evens, President and CEO of Curql added, “It levels the playing field for credit unions. This solution has long been utilized by banks. Not only is ModernFi building the first full-service deposit network for the entire credit union industry, they’re also greatly expanding the audience of prospective business and consumer members that credit unions can serve. It’s empowering them to compete more effectively against larger financial institutions, which is exactly why credit unions have prioritized deposit growth and why Curql chose to invest.”
“MDC has always focused on leveraging the collaborative spirit and scale of its owners to accelerate its success. Simply put, the 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.”
With ModernFi, credit unions can provide accounts with extended NCUA insurance* to grow deposits and large-value member relationships, including businesses, nonprofits, public funds, municipalities, and higher-net-worth individuals. Credit unions can also utilize the network to effectively manage their balance sheet by sourcing funding on demand and sweeping excess liquidity.
“We are thrilled to form ModernFi CUSO, which will fully focus on supporting our credit union partners, their missions, and their members,” said Paolo Bertolotti, CEO and Cofounder of ModernFi. “Deposit networks and reciprocal deposits are essential tools for financial institutions in this day and age, and we’re excited to bring them to credit unions of all sizes and designations to support their growth. Most importantly, we’re grateful to have the right people around the table to make it happen. We couldn’t ask for better, more experienced, or more knowledgeable partners than Curql, MDC, and Rodney, and we’re immensely grateful for our existing investors Canapi and Andreessen Horowitz for their continued support as we scale.”
