π° Financial Models
CUSO β Credit Union Service Organizations
A CUSO (Credit Union Service Organization) is a company owned by credit unions that provides services back to credit unions. Think of it as a cooperative's cooperative. ModernFi's CUSO is the **first-ever deposit network for credit unions** β enabling up to $15M in NCUA insurance per account vs the standard $250K limit. Zero incumbent competition in this space.
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How It Works
Standard NCUA limit: $250,000 per member, per credit union ModernFi CUSO network: Up to $15M per account (growing with network) Why CUSOs Exist: - Credit unions are nonprofit cooperatives (member-owned) - Regulations restrict what CUs can do directly - CUSOs allow pooled investment in shared services - Members (CUs) share in the economics β aligned incentives CUSO vs Vendor Model: βββββββββββββββββββββββββββββββββββββββ β IntraFi (Vendor Model - Banks) β β Bank pays fees β IntraFi keeps β β the yield spread as intermediary β β Bank has no ownership stake β βββββββββββββββββββββββββββββββββββββββ€ β ModernFi CUSO (Ownership Model) β β CU is a member-owner β β CU shares in network economics β β Aligned incentives = retention β βββββββββββββββββββββββββββββββββββββββ Key CUSO Investors: - Curql Collective β CU-focused venture fund - MDC (Members Development Company) β CU service network Jeff Kline (ex-MDC CEO) sits on ModernFi's board