Andreessen Horowitz has led a $4.5 million seed funding round for ModernFi, a marketplace that enables banks to exchange deposits on demand.
ModernFi connects banks with surplus deposits to those in need of funding, providing an outlet for excess funds and aiding banks in managing their balance sheets while generating potential revenue. This service also helps institutions secure liquidity and support asset origination.
With a technology infrastructure built on compliance and regulatory standards, ModernFi is already collaborating with U.S.-based banks ranging in size from $500 million to $100 billion in assets.
Paolo Bertolotti, CEO of ModernFi, stated, “Banks, especially community and regional institutions, are pillars in their local communities, extending credit to those seeking to purchase homes or vehicles, in addition to providing a secure place for individuals to store their life savings. By enabling banks to access cost-effective funding on demand and manage their balance sheets, ModernFi is fundamentally enhancing the operations of banks across the country.”