InvestFi, a credit union service organization (CUSO), has successfully raised $20 million to bolster its embedded investing platform designed for American credit unions and community banks. This innovative platform allows financial institutions to facilitate digital investing directly within their online banking systems, eliminating the need for customers to transfer funds to external brokerages or cryptocurrency platforms. The service includes features such as fractional investing in stocks and ETFs, guided investing, IRAs, and cryptocurrency trading, with plans for further expansion of product offerings as the platform scales. Remarkably, InvestFi has grown its client base from four institutions to over 60 in less than 18 months, underscoring the demand for integrated financial solutions among credit unions.
Kian Sarreshteh, CEO and Founder of InvestFi, emphasized that this funding will enable the company to enhance its platform and increase user adoption, aiming to draw account holders and deposits back from competing investment platforms. The funding round was led by Vibe Credit Union, with contributions from other consumer-focused financial institutions and institutional investors, including BankTech Ventures and Navari. Jeff Pascoe, Chief Operations and Strategy Officer at Vibe Credit Union, highlighted the importance of credit unions evolving to meet their members' financial needs at every stage, particularly in wealth-building through trusted partnerships.
The launch of InvestFi in 2024 coincided with research indicating that a significant portion of investors, approximately 75%, utilize third-party investment apps, with 24% of them not transferring funds back to their bank accounts. A report by PYMNTS further noted that credit unions must adapt to changing member expectations and leverage technology partnerships to foster innovation and retention. As competition intensifies in the financial services sector, the ability of credit unions to offer seamless investment options could redefine member loyalty and deposit retention strategies.
Kian Sarreshteh, CEO and Founder of InvestFi, emphasized that this funding will enable the company to enhance its platform and increase user adoption, aiming to draw account holders and deposits back from competing investment platforms. The funding round was led by Vibe Credit Union, with contributions from other consumer-focused financial institutions and institutional investors, including BankTech Ventures and Navari. Jeff Pascoe, Chief Operations and Strategy Officer at Vibe Credit Union, highlighted the importance of credit unions evolving to meet their members' financial needs at every stage, particularly in wealth-building through trusted partnerships.
The launch of InvestFi in 2024 coincided with research indicating that a significant portion of investors, approximately 75%, utilize third-party investment apps, with 24% of them not transferring funds back to their bank accounts. A report by PYMNTS further noted that credit unions must adapt to changing member expectations and leverage technology partnerships to foster innovation and retention. As competition intensifies in the financial services sector, the ability of credit unions to offer seamless investment options could redefine member loyalty and deposit retention strategies.
Source: PYMNTS
