A young CUSO building a cloud-based financial platform for credit unions has received a $500,000 investment from CU Solutions Group, according to a press release.
The company, Constellation Digital Partners, LLC, is building a financial services marketplace and platform that helps credit unions and their members choose services in a secure environment. The CUSO formed in May of this year.
The funding from CU Solutions Group, which is a CUSO based in Livonia, Michigan, is the twelfth investment in the software platform since it launched in May 2017, the company said. Constellation Digital Partners also said it accomplished the largest capital raise in credit union history and plans to launch its first product by the end of the year.
“Member expectations are very high when it comes to mobile experiences. Right now, credit unions aren’t delivering and Constellation will finally change that for our entire industry,” Constellation Digital Partners CEO Kristopher Kovacs said. “CU Solutions Group understands that mobile banking platforms currently limit a credit union’s ability to innovate far too often. Constellation breaks these barriers by replacing a credit union’s existing platform with an open, versatile solution, while CU Solutions Group’s LifeSteps Wallet services and content provide the perfect extension to the legacy online and mobile banking experience.”
Nine credit unions to date have invested in Constellation’s platform, including Coastal Credit Union, Teacher’s Credit Union, CFCU Community Credit Union, Meritrust Credit Union, Farmers Insurance Federal Credit Union, Georgia’s Own Credit Union, Affinity Federal Credit Union, Kinecta Federal Credit Union and Nusenda Credit Union, the company said.
Coastal Credit Union, based in Raleigh, North Carolina, has $2.9 billion in assets and 239,000 members. South Bend, Indiana-based Teachers Credit Union has $3.1 billion in assets and about 295,000 members, and Ithaca, New York-based CFCU Community Credit Union has $1 billion in assets and 70,000 members. Meritrust Credit Union, based in Wichita, Kansas, has $1.3 billion in assets and about 93,000 members. Farmers Insurance Federal Credit Union based in Los Angeles, has $765 million in assets and 50,000 members. Atlanta-based Georgia’s Own Credit Union has $2.3 billion in assets and 188,000 members, and Basking Ridge, New Jersey-based Affinity Federal Credit Union has $2.9 billion in assets and 156,000 members. Kinecta Federal Credit Union, based in Manhattan Beach, California, has $4 billion in assets and about 287,000 members. Nusenda Credit Union, based in Albuquerque, New Mexico, has $2 billion in assets and about 178,000 members.
CU Solutions Group has been a heavy investor in financial technology. It recently launched a mobile product aimed at helping credit unions become more front-and-center for members making daily financial decisions. The product, which the company calls LifeSteps Wallet and describes as a “wraparound container app,” combines a credit union’s existing mobile banking offerings with proprietary and third-party shopping, auto, home and financial wellness offerings.
