InvestiFi, a credit union service organization operating an investment technology platform, has secured $20 million in new funding. The InvestTech provider enables credit unions and community banks to integrate digital investing services directly into their online banking platforms, eliminating the need for customers to use third-party applications.
The capital injection comes as smaller financial institutions race to compete with major banks and fintech disruptors in the wealth management space. Credit unions and community banks have historically struggled to offer sophisticated investment tools due to technology and compliance constraints. InvestiFi’s white-label solution addresses this gap by allowing these institutions to keep customers within their existing digital ecosystems while expanding revenue streams beyond traditional deposit and lending products.
The funding will likely accelerate InvestiFi’s market penetration among the thousands of credit unions and community banks across the United States seeking to modernize their digital offerings and retain deposits that might otherwise flow to robo-advisors and brokerage platforms.
FXnCO Insight
Community financial institutions adopting embedded investment technology could shift significant assets away from standalone fintech platforms, making this sector worth monitoring for competitive disruption signals.
Source: Finextra