ModernFi

The ModernFi CUSO Team: Traditionally focused on individuals, credit unions have experienced significant growth in business and commercial shares and deposits in recent years. This growth has been extremely strong over the past decade, with commercial deposits as a percent of total deposits doubling between 2015 and 2023, and on track to represent nearly 5% of all deposits in the industry. Being able to provide the services required by modern businesses is essential to winning these members in a competitive market. The ModernFi CUSO team can help credit unions attract and retain business members by providing accounts with millions of dollars in NCUSIF insurance*. Extended insurance accounts not only help credit unions win new members, they also help strengthen relationships and grow wallet share with existing members. *NCUSIF insurance provided by program credit unions (subject to meeting certain conditions) Read more here: https://lnkd.in/eXYxRMtN

ModernFi is thrilled to announce our partnership with Members Development Company (MDC) to launch the first deposit network dedicated to credit unions. MDC serves as the research-for-development incubator for their owners and the credit union space. With ModernFi’s technology and MDC’s extensive network of 80 large credit union owners, the partnership ensures the success of the deposit network for credit unions and promotes close collaboration between the organizations to drive value for the credit union movement. Jeff Kline, the CEO of MDC, shared, "The MDC-ModernFi deposit network is transformative for the industry. We're excited to partner with ModernFi to bring these solutions to credit unions, helping them serve new members and accelerate their missions." ModernFi is grateful to support credit unions and their 140 million members across the country. Our partnership with MDC reaffirms our commitment to the credit union mission and our goal to enable credit unions to effectively and efficiently grow deposits and member relationships. Read more here: https://lnkd.in/e2dXmhCs

The ModernFi CU Team: Public funds are a wonderful source of deposits for many community institutions, providing liquidity while also tying local communities to their local lenders. These funds provide a reliable and substantial source of deposits, enabling credit unions to support community lending and investment initiatives. However, attracting public funds can be complicated, with stringent insurance requirements and varying state-by-state limitations. The ModernFi CU team helps credit unions compete for, win, retain, and grow public funds by providing accounts with extended deposit insurance, allow our partners to fully insure funds once received, removing the need for collateral and freeing up liquidity for lending. As we help more credit unions further their mission of serving their local communities by servicing public funds, we receive more questions around which states allow credit unions to hold these funds. The answer is nuanced, not always straightforward, and varies widely. To be helpful, our team has put together a brief state-by-state overview to serve as a resource and reference for any credit union looking to target public funds for deposit growth. Read more here: https://lnkd.in/eutT64nr

In response to the deposit pressures faced by many credit unions, the ModernFi team is proud to support and scale the first deposit network for credit unions to help grow deposits and member relationships. Over the past 8 years since 2015, assets at U.S. credit unions have nearly doubled from $1.2 trillion to $2.3 trillion. While deposits and shares have also grown well, their growth has not kept pace with assets since 2022. This divergence has applied meaningful pressure to many credit unions in the sector, who have been forced to turn to alternative funding sources, distracting from their core mission of raising funds from and supporting members. Over the same period, institutions that have utilized deposit networks like ModernFi have grown deposits 12% faster. Crucially, ModernFi has been able to help power organic and cost-effective share and deposit growth, supporting credit unions’ missions while alleviating funding pressures.

Last week, ModernFi was thrilled to host esteemed industry leaders Rodney E. Hood, the former chair of the NCUA and ModernFi board member, and Michael (Mickey) Noone, the VP of Business Lending at Royal Credit Union, for a conversation on the evolving landscape of credit union deposits. The panelists discussed the evolving credit union deposit landscape and emphasized the importance of extended insurance for attracting high-value members, powering lending activity, and future-proofing credit unions. Hood explained, “We’ve never had a tool or technology like ModernFi within the credit union system before” while Noone highlighted, “Everybody’s running to find a resource to get some level of NCUA coverage on deposits so finding ModernFi was literally a gift.” Missed the live event? Check out the recording for more strategic insights.

ModernFi is pleased to announce its successful integration with the Q2 Digital Banking Platform, via the Q2 Partner Accelerator Program. This end-to-end digital integration of a deposit network will support financial institutions’ deposit growth, retention, and management, enabling banks and credit unions to offer accounts with millions in extended deposit insurance directly in their digital banking platform. ModernFi’s integration with the Q2 Digital Banking Platform allows for seamless onboarding of Q2’s 450+ bank and credit union clients. The ModernFi team is privileged to support the deposit growth and stability of regional & community banks and credit unions across the country. The integration with Q2's Digital Banking Platform ensures close alignment and collaboration between the organizations as they work together to drive innovation, growth, and security for the banking industry. See ModernFi’s Q2 Marketplace page for more information: https://lnkd.in/eGEFR42X

We are pleased to announce our upcoming webinar, "Fireside Chat with Rodney Hood and Royal Credit Union," on May 30th. Join us for an insightful discussion led by ModernFi CEO, Paolo Bertolotti, PhD, on the future of deposits. Gain strategic insights from Rodney E. Hood, former Chairman of the NCUA, and Michael (Mickey) Noone, VP of Business Lending at Royal Credit Union. ModernFi is grateful to TRGroup and Tristate Collaborative for co-hosting this event. Don’t miss this opportunity to learn from industry experts. Register for the event here: https://lnkd.in/eFGuZdFA Tristate Collaborative: Minnesota Credit Union Network, The Wisconsin Credit Union League, Montana's Credit Unions TRGroup: Indiana Credit Union League, Kentucky's Credit Unions, Louisiana Credit Union League, Mississippi Credit Union Association, Tennessee Credit Union League, Virginia Credit Union League, West Virginia Credit Union League

ModernFi is delighted to announce that the Honorable Rodney E. Hood, former Chairman of the NCUA, has joined the firm as a Board Observer and Advisor. The ModernFi team is honored to work alongside Mr. Hood as the company launches the first deposit network for credit unions, supporting the safety and soundness of the credit union ecosystem. Mr. Hood brings a deep range of experience and industry knowledge to the ModernFi team. “I certainly believe in the strength of the important role that credit unions play in touching the lives of nearly 138 million members throughout the United States,” said Mr. Hood. ���While credit unions have strength in numbers and assets, the events around Silicon Valley Bank and the current interest rate environment have led to liquidity and depository pressure throughout the ecosystem. This is why I am so delighted to be on the advisory board with ModernFi whose financial technology is providing credit unions with a best-in-class opportunity for reciprocal deposits. As a former safety and soundness regulator, what ModernFi is doing is bringing credit unions another tool to add to the strength, safety, and vitality of the credit union ecosystem.”

ModernFi, the leading technology provider of deposit management for banks and credit unions, has earned recognition from both Fast Company and GGV Capital for continuing to innovate in the fintech space. ModernFi was named to Fast Company’s list of the World’s Most Innovative Companies for 2024, and was ranked the sixth most innovative company in the finance category. ModernFi was also named to the GGV Capital Fintech Innovation 50, which recognizes the 50 most promising fintech companies as determined by investors. “The awards are a reflection of the diligent work of our world-class team, the trust and support of our investors, and the close relationships we’ve been fortunate to build with our financial institution partners,” said Adam DeVita, COO and Cofounder. ModernFi is proud to accept its recent honors for financial technology innovation, and the ModernFi team is looking ahead to future growth and further industry advancements.

Introducing Term Funding: ModernFi Launches New Product as BTFP Winds Down To support funding and liquidity needs, ModernFi is pleased to announce the introduction of Term Funding to its platform. Banks and credit unions can now source cost-effective term funding on demand with simple order execution and seamless order management. ----------------------------------------- With the wind down of the Bank Term Funding Program this week, liquidity and funding remain top of mind for banks and credit unions. The current interest rate regime and events in the banking sector over the past year have led to aggressive deposit runoff and increased competition for deposits. Throughout the period, the ModernFi team has endeavored to act as a trusted solution for deposit growth, retention, and management for its FI partners. Responding to requests and built alongside pilot partners, ModernFi is pleased to announce the introduction of Term Funding to its platform, allowing any bank or credit union to seamlessly order and manage cost-effective term funding on demand. ModernFi Term Funding simplifies the funding process, empowering your team to make informed funding decisions and impressively manage your existing issuance. With clarity into the market and powerful order management tooling, ModernFi Term funding allows for strategic and tactical balance sheet management. It is a complete, end-to-end solution that assists with funding management, price discovery, order execution, and order management. To get a demo or learn more, please check out the release below. We would love to help with your funding needs and support your next chapter of growth.