ModernFi Surpasses 1,000 Financial Institutions, Reinforcing Its Role as Critical Infrastructure for the U.S. Banking System

NEW YORK--(BUSINESS WIRE)--ModernFi, the leading technology platform for deposit management, announced today that it has passed 1,000 financial institutions in its deposit networks. The announcement comes after rapid growth in its bank network, which now serves roughly 20% of all U.S. banks. Through ModernFi’s deposit networks, institutions of all sizes are able to provide additional security to large-value depositors and strategically manage their funding. The 1,000 institution milestone is confirmation of ModernFi’s role as critical infrastructure for U.S. banking and its mission to empower its partner institutions to grow and better serve their communities.

Since ModernFi’s founding in 2022, a dynamic rate environment and periods of banking stress have led to a heightened focus on prudent deposit management from both institutions and regulators. ModernFi’s deposit network technology has brought a superior depositor and admin experience, fair pricing, institution-alignment, and improved service to the critical reciprocal deposit market. Now totaling nearly $500 billion following Congress’s recent legislation expanding their acceptable use, reciprocal deposits have cemented themselves as foundational infrastructure for community and regional institutions, and ModernFi is fast becoming the market’s preferred provider.

“ModernFi is proud to support over 1,000 institutions in all 50 states,” said Paolo Bertolotti, CEO and Cofounder of ModernFi. “Community and regional institutions are the powertrain of the American economy. We’re grateful to bring them the modern technology, strong alignment, and fair pricing they deserve so they can continue to power the communities and industries that rely on them.”

Since inception, ModernFi has ensured its deposit networks are aligned with the institutions it serves. Through ModernFi, member banks have oversight, alignment, and ownership in their critical deposit network infrastructure.

“Deposit networks and reciprocal deposits have quickly grown in scale and importance in recent years, and are now a vital part of an institution’s product suite,” said Gene Ludwig, 27th Comptroller of the Currency, Managing Partner of Canapi Ventures, and founder of the reciprocal deposit concept. “By ensuring institutions have ownership and alignment with their networks and have access to fair pricing and competitive technology, ModernFi is moving the reciprocal market, banking sector, and country forward.”

“ModernFi’s growth with institutions has been unprecedented, and it could not come at a better time,” said Neil Underwood, General Partner of Canapi Ventures. “As reciprocal deposits become more mainstream, ModernFi’s ability to embed reciprocal products directly into the bank’s own digital experience and brand is crucial for finally delivering an enjoyable experience for depositors and allowing the entire market to continue its rapid growth.”

“The 1,000 institutions milestone is a reflection of both ModernFi’s scaling network effects and its strong value proposition for institutions of all sizes,” said David Haber, General Partner of Andreessen Horowitz. “With now over one fifth of U.S. banks on platform, ModernFi is in a privileged position to provide accelerating value to its partner institutions through a growing range of products and services. ModernFi has become deeply embedded in and invaluable for the country’s banking landscape.”

As ModernFi looks ahead, it remains focused on expanding its deposit network depth and services, investing in further enhanced technology and delivering quickly growing capacity to partners. The 1,000 milestone is another step on ModernFi’s path to serve as critically important infrastructure that drives the American economy and empowers its partner institutions.

The full list of participating banks and credit unions is available at nbid.com/bank-list and modernfi.com/credit-union-list.

About ModernFi

ModernFi empowers financial institutions of all sizes to better serve their communities. Through ModernFi, institutions can grow, retain, and manage their deposit base by sourcing deposits, sweeping funds, and providing additional security to depositors. Backed by Canapi, Andreessen Horowitz, ICE, and leading banks and credit unions, the firm provides financial institutions with market-leading deposit management built on a modern tech stack and a foundation of compliance. Learn more at modernfi.com.