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ModernFi, a New York-based fintech specializing in deposit management, announced a $30 million Series B funding round. The round was led by Canapi Ventures, a venture capital firm focused on fintech, with participation from existing investors Andreessen Horowitz, Curql, and Remarkable Ventures, alongside new investor Intercontinental Exchange, Inc. (ICE), a global leader in financial market infrastructure. This brings ModernFi’s total funding to over $60 million, following a $18.7 million Series A in January 2024 and a $4.5 million seed round in February 2023. The funding underscores ModernFi’s growing influence in providing technology-driven solutions for deposit growth and stability, particularly for community and regional banks and credit unions.
Strategic Use of Funds
The capital will be deployed to enhance ModernFi’s platform and market reach. Key initiatives include:
- Accelerating Adoption: Expanding the platform’s use among banks and credit unions to strengthen their deposit management capabilities.
- Team Expansion: Hiring across engineering, bank partnerships, and compliance to support growth and improve service delivery.
- Technology Integrations: Deepening integrations with digital banking platforms and core providers to streamline operations and enhance user experience.
- Institution Success Teams: Scaling support teams to assist partner institutions in leveraging ModernFi’s tools for deposit growth and customer retention.
These efforts aim to solidify ModernFi’s position as a foundational infrastructure provider, enabling financial institutions to compete effectively in a challenging banking environment.
Market Context and ModernFi’s Role
The banking sector has faced significant challenges since 2022, with over $1.2 trillion in deposits—approximately 7% of the total deposit base—leaving the system due to rising interest rates and high-profile bank failures like Silicon Valley Bank and Signature Bank. Community and regional banks have been disproportionately affected, as depositors seek stability, and fintechs offer low-friction alternatives. ModernFi’s platform addresses these challenges by providing a tech-enabled deposit network that allows institutions to source deposits, sweep funds, and offer extended insurance to depositors, thereby enhancing balance sheet stability and attracting large-value clients. Its National Bank InterDeposit Company (NBID), launched in 2025, now includes banks representing over 40% of the reciprocal deposit market, while ModernFi CUSO, launched in 2024, serves over 75 leading credit unions, offering up to $15 million in NCUA insurance per account.
Investor Confidence and Strategic Backing
The participation of prominent investors signals strong confidence in ModernFi’s vision. Canapi Ventures, led by Gene Ludwig, former Comptroller of the Currency, emphasizes ModernFi’s role in aligning financial institutions with critical deposit infrastructure. Andreessen Horowitz, a long-time backer since the seed round, highlights the platform’s technological innovation. Intercontinental Exchange’s involvement adds a new dimension, bringing expertise in market infrastructure and data solutions. Curql and Remarkable Ventures further align with ModernFi’s mission to support credit unions and community banks, reinforcing its ethos of fostering financial inclusivity.
Leadership and Vision
Founded in 2022 by Paolo Bertolotti (CEO) and Adam DeVita, ModernFi combines technical expertise and financial industry experience. Bertolotti, with a Ph.D. from MIT in machine learning, and DeVita, a former product manager at Citi, have built a platform that prioritizes API-first, cloud-native technology and compliance. Bertolotti emphasizes the importance of community and regional financial institutions as the “engine of the American economy,” providing credit and services to underserved sectors. The platform’s ability to streamline onboarding and operations sets it apart from traditional deposit networks, which often rely on manual processes, making it a timely solution in a competitive landscape.
Background and Evolution of ModernFi
ModernFi was established to address inefficiencies in the deposit management market, which has become increasingly dynamic due to economic shifts and regulatory pressures. Traditional options like deposit brokers, listing services, and Federal Home Loan Banks are often cumbersome and costly. ModernFi’s deposit network enables banks and credit unions to manage balance sheets efficiently by sourcing deposits on demand, sweeping excess funds, and providing extended FDIC or NCUA insurance through partner institutions. This helps institutions attract high-value depositors and maintain liquidity without compromising stability.
The company’s growth trajectory is marked by significant milestones:
- Seed Funding (February 2023): Raised $4.5 million led，仍0- led by Andreessen Horowitz, to build a tech-enabled deposit marketplace for banks ranging from $500 million to $100 billion in assets.
- Series A Funding (January 2024): Secured $18.7 million, led by Canapi Ventures, with participation from Huntington National Bank, First Horizon, Regions, and others, totaling over $23 million.
- ModernFi CUSO Formation (2024): Launched the first deposit network for credit unions, backed by Curql Collective and Members Development Company, focusing on NCUA insurance and member growth.
- Series B Funding (September 2025): The latest $30 million round, bringing total funding to over $60 million, with a focus on scaling infrastructure and adoption.
Recommended: Haven Capital Partners Closes Inaugural Fund, At $375 Million
Technological Innovation
ModernFi’s platform is built on a modern tech stack, emphasizing API-first and cloud-native solutions. Unlike traditional deposit networks that rely on manual processes, ModernFi streamlines onboarding, ledgering, reconciliation, and balance sheet analytics. Features include:
- Integrated Digital Onboarding: Simplifies client and institution integration.
- Real-Time Funding: Allows banks to source overnight or term funding for liquidity.
- Extended Insurance: Offers millions in aggregate FDIC/NCUA insurance across network institutions, enhancing depositor security.
- Balance Sheet Optimization: Enables institutions to manage excess deposits and earn revenue.
The introduction of Term Funding in 2025, in response to the wind-down of the Bank Term Funding Program, addresses liquidity needs with cost-effective, on-demand funding solutions.
Impact on the Banking Sector
ModernFi’s solutions are particularly impactful for community and regional banks, which provide a significant share of credit to local businesses and individuals. The platform’s ability to offer non-rate-driven value propositions, such as extended insurance and streamlined operations, helps these institutions compete with larger banks and fintechs. The National Bank InterDeposit Company (NBID) and ModernFi CUSO have become pivotal infrastructures, with NBID covering over 40% of the reciprocal deposit market and ModernFi CUSO serving over 75 credit unions. This scale demonstrates ModernFi’s rapid adoption and influence in stabilizing the deposit base of smaller institutions.
Investor and Industry Perspectives
Industry leaders have praised ModernFi’s approach. Gene Ludwig of Canapi Ventures highlights its disciplined execution and alignment with systemically important infrastructure. Ben Jackson, President of ICE, notes ModernFi’s contribution to transparent and accessible financial markets. Credit union leaders, such as John Carew of Georgia’s Own and Brian Berrett of ICCU, emphasize the platform’s role in leveling the playing field and fostering trust through enhanced deposit insurance.
Financial Performance
ModernFi generates revenue through basis points on deposits in its network. While specific financial details are not disclosed, CEO Bertolotti described 2023 as “a very good year,” indicating strong performance amid banking sector challenges. The company’s recognition by Fast Company as one of the World’s Most Innovative Companies for 2024 and its ranking as the sixth most innovative finance company underscore its growing reputation.
With the Series B funding, ModernFi is poised to expand its market presence and technological capabilities. The focus on deeper integrations and team expansion will likely enhance its platform’s scalability and user experience. The partnership with strategic investors like ICE and Curql positions ModernFi to further innovate in deposit management, potentially introducing AI-driven analytics or advanced liquidity solutions. The company’s commitment to compliance and community-focused banking aligns with the evolving needs of the U.S. financial system, ensuring its continued relevance.
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