NEW YORK--(BUSINESS WIRE)--ModernFi, which operates a deposit network that helps banks grow, retain, and manage their deposit base, announced today it has formed a partnership with the Mid-Size Bank Coalition of America (MBCA), a distinct and singularly-focused “self-help” alliance representing the nation's mid-size banks.
Across the country, mid-size banks provide financial solutions to entrepreneurs, professionals, their businesses, and their families. Mid-size banks fuel growth and build stronger connections to the communities in which they operate. The MBCA proudly serves as their voice and self-help network.
Deposit retention and growth have become key priorities for U.S. banks over the past year. Prompted by rising interest rates and magnified by recent bank turmoil, deposits have quickly left the banking sector. Small, mid-size, community, and regional banks have been disproportionately affected by the outflows.
Through ModernFi's network, banks can grow, retain, and manage their deposit base by sourcing deposits, sweeping funds, and providing extended insurance to depositors through program banks. ModernFi’s solutions help banks attract and retain large-value depositors, driving growth and increasing balance sheet stability. Unlike alternatives, ModernFi streamlines onboarding and operations for banks and their clients, increasing the usability and reach of sweep and reciprocal products.
Brent Tjarks, Executive Director at MBCA, said, “We’re pleased to partner with the ModernFi team to enable a more efficient deposit marketplace. America’s mid-size banks play a crucial role in meeting the credit needs and serving as catalysts for economic and job growth in towns across America. By allowing these banks to source cost-effective funding on demand and manage balance sheet size, ModernFi is fundamentally improving how mid-size banks across the country operate and who will therefore be even better able to serve Main Street businesses and consumers.”
ModernFi specifically works with small, mid-size, community, and regional banks to help them thrive in an increasingly competitive landscape and attract large-value deposits that might otherwise go to the largest banking institutions or leave the banking sector entirely.
“Mid-size banks form the backbone of the American economy,” said Paolo Bertolotti, CEO of ModernFi. “They are significant providers of capital to their areas and industries, and they provide essential banking services to their communities. Their contributions to the vitality and growth of their regions are indispensable. As the sector focuses on deposits, the ModernFi team is privileged to help the deposit growth and stability of mid-size banks across the country.”
The ModernFi and MBCA partnership brings ModernFi’s products and services to MBCA members and ensures close alignment and collaboration between the organizations. Moving forward, America’s mid-size banks are well positioned to continue helping their clients, colleagues, and communities flourish.
ModernFi operates a deposit network that helps banks grow, retain, and manage their deposit base. Through ModernFi's network, banks can source deposits on demand, sweep excess funds, and provide extended insurance to depositors through program banks. ModernFi provides the software and integrations to streamline onboarding and operations for banks and their depositors, increasing the usability and reach of sweep and reciprocal programs. Learn more at modernfi.com
About Mid-Size Bank Coalition
Founded in 2010, the MBCA is a distinct and singularly focused "self-help" community for America's mid-size banks. The MBCA provides a forum to facilitate the utilization of information, market developments and best practices tailored toward mid-size banks. Our entrepreneurial culture also allows for consortium opportunities to share research and explore commercial ventures, resulting in a more resilient and competitive banking landscape that helps reduce the cost of banking services to consumers. Learn more at midsizebanks.com