A significant development has taken place in the banking sector as ModernFi, a company offering end-to-end deposit management solutions to community and regional banks, has secured $18.7 million in Series A funding. This funding round was led by Canapi Ventures and saw participation from notable investors such as Andreessen Horowitz and Remarkable Ventures, as well as a consortium of banks including Huntington National Bank, First Horizon, and Regions.
Key Takeaway
ModernFi has raised
8.7 million in Series A funding to further its mission of assisting banks in managing and growing their deposit base amidst the evolving challenges in the banking landscape.
Addressing Banking Challenges
ModernFi’s co-founder and CEO, Paolo Bertolotti, highlighted the unique and substantial nature of the years 2022 and 2023, emphasizing the impact of rising interest rates and the collapse of institutions like Silicon Valley Bank. These events have significantly affected small and mid-sized banks, making deposit growth, retention, and management a top priority for many institutions. ModernFi aims to provide support to deposit networks and institutions to navigate these challenges and sustain their growth.
Utilizing the Funding
The newly secured capital will be channeled towards the expansion of the company’s team and organizational structure. This includes investments in engineering, new product development, compliance and regulatory adherence, and business development. ModernFi also plans to focus on enhancing its analytics suite, asset liability management, and account-level deposit analytics, with the overarching goal of supporting the entire lifecycle and workflow for bank CFOs.
