NEW YORK—ModernFi, a provider of deposit management for financial institutions, said it has formed and received funding for ModernFi CUSO that has been launched to support and scale the first deposit network for credit unions.
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.
‘Significant Alignment’
“ModernFi's partnership with Curql and MDC represents a significant alignment with two of the most influential forces in the credit union industry,” the company said in a statement. “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.”
ModernFi said that through its solution 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.
Balance Sheet Management
Credit unions can also utilize the network to effectively manage their balance sheet by sourcing funding on demand and sweeping excess liquidity, the company added.
Former NCUA Board Chairman Rodney Hood is a member of the CUSO’s board.