ModernFi secures $18.7m to bring Tech-Forward platform to banks
By Delisha Fernandes
FinTech ModernFi has raised an additional $18.7 million in funding to bring its tech-forward platform to community and regional banks.
The funding round was 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.
“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,” said Paolo Bertolotti, CEO and Cofounder of ModernFi. “Faced with fundamental shifts in the behavior of deposits, institutions benefit 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.”
ModernFi operates a deposit network through which banks can grow, retain, and manage their deposit base by sweeping funds, sourcing deposits, and providing extended insurance to depositors through program banks. ModernFi’s solutions help banks attract and retain large-value depositors, driving growth and increasing balance sheet stability. Unlike alternatives, ModernFi streamlines onboarding and operations for banks and their clients, increasing the usability and reach of sweep and reciprocal products.
Faced with a rapidly evolving deposit landscape, financial institutions across the country have turned to ModernFi to help manage their funding. 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. Coupled with increased regulatory scrutiny on liquidity and funding, the need for ModernFi’s software for deposit management has never been greater.
“The industry needs a next-generation solution for reciprocal deposits that is seamlessly integrated into online banking, built both API-first and cloud-native,” said Neil Underwood, Co-Founder and General Partner at Canapi. “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.”
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