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10 credit unions joined Curql Collective and Members Development Company in an investment round for ModernFi CUSO, the first credit union deposit network that provides additional insurance and other services for large-dollar depositors.

Participation by MDC, a Kansas City, Mo.-based research for development consortium of more than 80 large credit union owners, and the Des Moines, Iowa-based Curql, a collective of more than 120 credit unions jointly investing in financial technology, was announced in tandem with the CUSO’s formation in July 2024. MDC and Curql were backed by existing ModernFi investors Canapi and Andreessen Horowitz.

While the amounts contributed by each of the 10 credit unions were not disclosed, ModernFi said MDC, Curql and the credit unions raised a combined total of $9 million.

ModernFi developed a back-office process that allows a credit union to extend NCUA coverage to large depositors – such as businesses, nonprofits, public funds, municipalities and higher-net-worth individuals – beyond the $250,000 limit through a reciprocal network of other credit unions. It also provides credit unions with an end-to-end deposit management platform. ModernFi’s board includes former NCUA Chairman Rodney Hood.

The 10 credit unions that participated in the latest round of funding for ModernFi CUSO were:

  • ABNB Federal Credit Union ($845 million, Chesapeake, Va.)
  • Ascend Federal Credit Union ($4.3 billion, Tullahoma, Tenn.)
  • Corporate One Federal Credit Union ($6.8 billion, Columbus, Ohio)
  • Georgia’s Own Credit Union ($4.2 billion, Atlanta)
  • Idaho Central Credit Union ($11.6 billion, Chubbuck, Idaho)
  • IH Mississippi Valley Credit Union ($2.1 billion, Moline, Ill.)
  • Royal Credit Union ($5.3 billion, Eau Claire, Wis.)
  • SAFE Federal Credit Union ($1.8 billion, Sumter, S.C.)
  • Service Federal Credit Union ($5.7 billion, Portsmouth, N.H.)
  • Suncoast Credit Union ($18.4 billion, Tampa, Fla.)
“As we learned more about ModernFi CUSO, it became clear the broad impact that its deposit network solution could have on the industry and many of the credit unions we serve today,” Corporate One CEO Melissa Ashley said. “As the first deposit network specifically designed for credit unions, we recognized this as a crucial tool that was previously missing in the credit union network. We are excited to invest in the CUSO and help make this a successful offering for credit unions.”

“The partnership with ModernFi was made possible by MDC and Curql. MDC’s ‘Balance Sheet Marketplace’ project evaluated 15-plus solutions to help credit unions with deposit growth, and ModernFi offered a solution no other company could bring,” Georgia’s Own Chief Strategy Officer John Carew shared. “ModernFi makes it possible for credit unions to capture the full value of deposit networks, something historically only banks had, while maintaining the member relationship entirely.”

Royal CEO Brandon Riechers emphasized the potential impact of the CUSO on business member growth: “Business banking deposit growth has been a focus for Royal and having access to extended NCUA coverage adds significant value as we look to expand our business banking member base. The ModernFi solution is positioned to be a critical component of our growth strategy.”

In addition, Suncoast CEO Kevin Johnson noted how the CUSO could give credit unions a competitive edge: “Competition for deposits and shares remains elevated, and credit unions need innovative solutions for their relationship management teams to differentiate. ModernFi CUSO’s deposit network levels the playing field against larger institutions who have had access to these products for decades.”

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Natasha Chilingerian

Natasha Chilingerian has been immersed in the credit union industry for over a decade. She first joined CU Times in 2011 as a freelance writer, and following a two-year hiatus from 2013-2015, during which time she served as a communications specialist for Xceed Financial Credit Union (now Kinecta Federal Credit Union), she re-joined the CU Times team full-time as managing editor. She was promoted to executive editor in 2019. In the earlier days of her career, Chilingerian focused on news and lifestyle journalism, serving as a writer and editor for numerous regional publications in Oregon, Louisiana, South Carolina and the San Francisco Bay Area. In addition, she holds experience in marketing copywriting for companies in the finance and technology space. At CU Times, she covers People and Community news, cybersecurity, fintech partnerships, marketing, workplace culture, leadership, DEI, branch strategies, digital banking and more. She currently works remotely and splits her time between Southern California and Portland, Ore.

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