SANTA ROSA, Calif.--(BUSINESS WIRE)--Today, Union Credit comes out of stealth mode with the first marketplace for credit unions to deliver perpetual credit approval and one-click loan activation to new member prospects. Now, credit unions can break into new markets digitally with firm offers of credit embedded into the front end of purchase and financing experiences.
The fintech startup is launching with $5 million in Seed funding, led by CMFG Ventures, and supported by Marin Sonoma Impact Ventures (MSIV), Array and other strategic fintech influencers. The company will use this investment to focus on building out its digital lending marketplace, SDK, and a direct-to-consumer app where consumers can manage perpetual offers of credit from local lenders that want to serve them.
Union Credit has partnered with CuneXus, a wholly-owned technology subsidiary of CUNA Mutual Group that is currently producing over $27 billion in loans annually. CuneXus co-founder Dave Buerger, is launching his new company with colleague Barry Kirby to leverage this partnership and offer an embedded digital storefront model outside the credit union’s digital walls and into the open market. Union Credit will be the exclusive partner of CuneXus to offer this marketplace and initially will focus on the nearly 250 credit unions already leveraging CuneXus. These credit unions serve communities throughout the United States and represent approximately 37 million members.
Brian Kaas, president and managing director at CMFG Ventures, said, “Ending the guesswork of lending and financing is an important step towards financial health. Union Credit can create real transparency via perpetual credit access. It’s a model that has the potential to completely change the way credit unions grow, allowing them to compete with fintechs and large financial institutions in their communities during the purchase experience. The company fits well into our portfolio and brings a bright perspective to the future of the credit union movement.”
Union Credit provides credit unions with new, credit-worthy members from outside their ecosystem by aggregating consumer data, and matching it with credit union field of membership, product, decisioning and underwriting details. For the 250 credit unions already using the CuneXus platform, these lenders will have the ability to easily opt-in to Union Credit’s marketplace, via an existing integration with CuneXus. Once the match is made, the consumer is in charge of the relationship and their data. If they choose to move forward with an offer, it only takes one-click to engage.
Buerger, CEO of Union Credit, said, “Credit unions thrive on their long-lasting member relationships, but acquiring new relationships has always been a challenge. Today that ends. Union Credit advocates for credit unions on a national scale, putting them in front of consumers at their point of need. It combines the local, competitive, and advantageous offers that credit unions are known for and gives them the sophisticated platform they need to amplify existing digital services and reach new audiences.”
Buerger continues, “We’re building an exceptional team and a tremendous support group of partners and investors. There’s great potential here to profoundly impact the industry and take it forward.”
About Union Credit
Union Credit provides consumers with firm, one-click credit offers embedded within their daily activities. The marketplace helps credit unions break into new markets digitally with access to the front end of purchase and financing experiences. Merchants embedding Union Credit benefit from providing customers with local, competitive, and advantageous offers that are in the buyer’s best interest. Visit our website and follow us on LinkedIn to learn more.