ModernFi, the pioneering tech-forward platform, announced a significant milestone in its journey today by raising $18.7m.
Established with a vision to revolutionize the banking experience for community and regional banks, ModernFi is redefining how these institutions manage, grow, and retain their deposits in a dynamic financial landscape.
The company proudly disclosed the closure of an $18.7m Series A funding round. This strategic investment was led by Canapi Ventures and saw the participation of notable entities including Andreessen Horowitz, Remarkable Ventures, and leading banking institutions such as Huntington National Bank, First Horizon, and Regions.
ModernFi stands at the forefront of banking innovation, offering a unique deposit network. This network empowers banks to enhance their deposit base through advanced techniques such as sweeping funds, sourcing deposits, and providing extended insurance to depositors. Not just a platform, ModernFi represents a paradigm shift, introducing modern tools to manage and grow bank funding effectively.
The new influx of funds is earmarked for bolstering the company’s support to the banking sector. ModernFi aims to fortify its deposit network, thereby assisting banks in attracting and retaining large-value depositors. This, in turn, is expected to drive growth and ensure balance sheet stability for participating institutions.
ModernFi distinguishes itself by streamlining the operational processes for banks and their clients, making it the only tech-enabled deposit network in the country. Its solutions, built both API-first and cloud-native, offer seamless integration into online banking, marking a significant leap over traditional network products.
ModernFi CEO Paolo Bertolotti emphasized the company’s commitment to the banking sector, “Community and regional banks form the foundation of the American economy. 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.”
Neil Underwood, Co-Founder and General Partner at Canapi, praised ModernFi’s innovative approach, “The industry needs a next-generation solution for reciprocal deposits that is seamlessly integrated into online banking. 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.”
Adding to this recent achievement, ModernFi has previously secured a $4.5m seed round, predominantly led by Andreessen Horowitz. This brings the company’s total raised capital to over $23m to date, marking a trajectory of rapid growth and industry recognition.
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