ModernFi and Members Development Company Announce Partnership to Support the First Deposit Network for Credit Unions
July 10 2024 - 7:00AM
Business Wire
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 sheets
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.
* Insurance is provided through program credit unions (subject
to certain conditions)
About ModernFi
ModernFi empowers financial institutions of all sizes to better
serve their communities. Through ModernFi, banks and credit unions
can grow, retain, and manage their deposit base by sourcing
deposits, sweeping funds, and providing additional security to
depositors. Founded by a team of veterans from technology and
finance, the firm provides financial institutions with end-to-end
deposit management built on a modern tech stack and a foundation of
compliance. Learn more at ModernFi.com.
About Members Development Company
MDC is the credit union network’s multi-million-dollar R&D
department. We scan the horizon, research the issues, and create
actionable solutions to solve problems for today – and tomorrow. By
pooling the resources of 80+ credit union and CUSO owners, MDC is
able to deliver meaningful solutions efficiently and affordably. We
learn the lessons of what does and doesn’t work — without
exhausting our owners’ budgets and resources for exploration and
development. We also believe that our research must be driven by
our owners, for our owners. While we do the heavy lifting, our
credit union and CUSO owners both advise and participate in the
work not just as investors but as trusted partners.
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Media ModernFi contact@modernfi.com
Media Members Development Company Patrick Guilshan
patrick@williammills.com