US regional banks, Huntington National, First Horizon, and Regions, have joined an $18.7 million Series A round in deposit network ModernFi.
Led by Canapi Ventures, the Series A also had participation from Andreessen Horowitz, and Remarkable Ventures. This round adds to a $4.5 million seed round led by Andreessen Horowitz, bringing the company's total raised to over $23 million to date.
Specifically targeted at the regional banking 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. ModernFi also streamlines onboarding and operations for banks and their clients, increasing the usability and reach of sweep and reciprocal products.
“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,” says 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.”
Tyler Craft, director of transformation - fintech & emerging technology at First Horizon Bank, affirms: "Deposit management is a key priority for the banking sector right now. ModernFi's technology to streamline onboarding and operations for depositors and banks provides an innovative additional way for our industry to serve clients."