US regional banks Huntington National, First Horizon, and Regions have participated in an $18.7 million Series A funding round for deposit network ModernFi.
Led by Canapi Ventures, the round also saw investment from Andreessen Horowitz and Remarkable Ventures. This funding follows a $4.5 million seed round, bringing ModernFi’s total raised to over $23 million to date.
ModernFi specifically targets the regional banking sector by offering a deposit network that enables banks to grow, retain, and manage their deposit base through fund sweeping, deposit sourcing, and extended insurance for depositors. The platform also enhances the onboarding process and operational efficiency for both banks and their clients, improving access to sweep and reciprocal products.
“Community and regional banks form the foundation of the American economy, providing a significant amount of credit and banking services to critical industries and areas that might otherwise be overlooked,” stated Paolo Bertolotti, CEO and cofounder of ModernFi. “Faced with fundamental shifts in deposit behaviors, institutions can greatly benefit from modern tools to manage and grow their funding.”
Tyler Craft, director of transformation for fintech & emerging technology at First Horizon Bank, emphasized the importance of deposit management in the banking sector: “ModernFi’s technology streamlines onboarding and operations for both depositors and banks, providing an innovative approach for our industry to better serve clients.”