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Canapi Ventures announced its investment in ModernFi.

Canapi Ventures announced its investment in ModernFi.

The banking industry is navigating through a period of tremendous pressure and uncertainty. The Federal Reserve’s aggressive rate hike cycle, compounded with high-profile bank failures, has led to the most aggressive deposit runoff from the sector in modern history. Since Q1 2022, over $1 trillion, roughly 7% of the total deposit base, has left the banking sector.

The deposit runoff has disproportionately affected regional and community banks, which are more prone to stability concerns than “too big to fail” FIs. Importantly, these institutions lack access to a tech-enabled, low-friction deposit management platform – critical infrastructure needed to serve large consumer and commercial depositors.

That is why we're so excited to announce our investment in ModernFi, a cutting-edge deposit network built on a modern tech stack that enables banks and credit unions to seamlessly reciprocate, broker, and sweep deposits!

With MordernFi, banks and credit unions now have access to an API-first, cloud-native deposit platform that streamlines onboarding and operations. The platform is elegantly designed with the sole purpose of increasing utilization of key deposit programs, which ultimately better serve and retain the customer that might otherwise go to the largest banking institutions or leave the banking sector entirely.

We couldn’t be more excited to partner with ModernFi alongside Canapi Alliance banks Huntington, First Horizon, and Regions, and investors Andreessen Horowitz and Remarkable Ventures, as they transform the way community and regional banks grow, manage, and retain deposits.

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