ModernFi, a company specializing in deposit management networks, has successfully closed a Series A funding round, securing $18.7 million. The round was led by Canapi Ventures and saw contributions from notable financial institutions including Huntington Bancshares (NASDAQ:HBAN), First Horizon (NYSE:FHN) Corp., and Regions Financial (NYSE:RF). This influx of capital brings ModernFi's total funding to $23 million.
The newly acquired funds are designated for several key areas of growth and enhancement:
Improving product functionality to meet the evolving needs of their clients.
* Strengthening compliance measures to ensure adherence to regulatory standards.
Expanding the workforce to support the company's growth and service offerings.
ModernFi's funding success comes at a time when the banking industry is particularly receptive to innovative financial services. Following the high-profile collapses of Silicon Valley Bank and Signature Bank (OTC:SBNY) in early 2023, financial institutions have been actively seeking reliable partners to manage deposits. Despite a recent slowdown in the banking sector, the demand for services like those offered by ModernFi remains strong, indicating a sustained interest in deposit management solutions.
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