NYC-based ModernFi secures $18.7M in series A round funding to bring its tech-forward platform to community and regional banks to help them grow, retain, and manage their deposits.
Led by Canapi Ventures, the round also had participation from Andreessen Horowitz, Remarkable Ventures, and leading banks Huntington National Bank, First Horizon, and Regions.
This round adds to a $4.5 million round led by Andreessen Horowitz, bringing the company’s total raised to over $23 million to date. Faced with higher interest rates and stress in the sector, banks have been seeking new, innovative options that can drive deposits.
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ModernFi helps financial institutions (FIs) thrive in an increasingly competitive landscape, and attract and retain clients that might otherwise go to the largest banking institutions or leave the sector entirely.
Community and regional banks form the foundation of the American economy, providing an outsized amount of credit and banking services to critical industries and areas that might otherwise be overlooked.
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Faced with fundamental shifts in the behavior of deposits, institutions have benefitted from modern tools to manage and grow their funding. ModernFi has been privileged to help institutions of all sizes protect their deposit base, and the team looks forward to continuing its support of the sector.
Neil Underwood, Co-Founder and General Partner at Canapi said, “The industry needs a next-generation solution for reciprocal deposits that is seamlessly integrated into online banking, built both API-first and cloud-native, ModernFi has built exactly that, at the exact right time and place. Canapi’s strong bank network and deep fintech experience will help accelerate significant deposit flows through the platform.”
Igor Cerc, Chief Enterprise Strategy Officer for Huntington National Bank and Head of Huntington Ventures said, “Huntington is laser focused on delivering innovative products and services that meet the needs of our customers and colleagues, ModernFi’s deposit network delivers critical features and capabilities around deposit management for the industry. ModernFi’s functionality should expand digital capabilities for the banking sector and offers a robust, modern service with the potential to further differentiate how our Wealth Management customers can manage their money.”
Tyler Craft, Director of Transformation – Fintech & Emerging Technology at First Horizon Bank said, “We are thrilled to partner with ModernFi to bring a next-generation deposit network to market, Deposit management is a key priority for the banking sector right now. ModernFi’s technology to streamline onboarding and operations for depositors and banks provides an innovative additional way for our industry to serve clients.”
Elevated interest rates and the advancement of technology including digital banking and real-time money movement have fundamentally changed the speed and stability of deposits.
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David Haber, General Partner at Andreessen Horowitz said, “At this critical time in the banking sector, we’re thrilled to reaffirm our investment in ModernFi, In the face of unprecedented deposit outflows and extraordinary banking events, ModernFi’s deposit network delivers critical stability and control over deposit management. With their strategic position and track record, we’re confident ModernFi will further catalyze growth and provide crucial support to American banks.”
About ModernFi
Financial institutions of all sizes may grow, hold onto, and manage their deposits with the help of ModernFi. Banks and credit unions can originate deposits, sweep money, and give depositors more protection using ModernFi’s deposit network.
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