“Tomorrow’s financial products and services are being funded, supported, and validated by CMFG Ventures today to improve the financial stability of credit union members in the future,” said Brian Kaas, managing director, CMFG Ventures. “We are committed to the success of our entrepreneur partners and that commitment goes beyond funding, which is why we’re so pleased to partner with one of the country’s leading research organizations, Filene Research Institute, to test companies and ideas for desirability, viability, and feasibility.”
The FinTech Catalyst Incubator will test fintech and insurtech products and services that could fill credit union system gaps and create new opportunities for credit unions to innovate, grow, and better serve their members. Credit unions interested in testing these solutions can sign up to participate in testing an innovative program or idea to help meet a member need.
“We have a long and successful track record of executing incubators that test and scale solutions in the marketplace,” said Ryan Foss, senior director, Filene Research Institute. “Over the last five years with Filene, more than 100 credit unions have been involved in the creation, launch, testing and adoption of more than 15 products and service innovations across the U.S. and Canada. We’re excited to help position credit unions as drivers of innovation in the financial services industry.”
Each fintech product or service will be tested by a group of up to 12 credit unions of varying asset sizes, locations, and consumer demographics for six months. During this time, participating credit unions will offer their members the new fintech product or service while receiving tools and support from Filene Research Institute to test a unique hypothesis. These credit unions get a head start on bringing needed solutions to their communities and can shape final outcomes by sharing feedback and insights throughout the testing period. Research findings, including next steps and launch recommendations for viable products, will be published by Filene Research Institute upon completion of the testing period.
“Right now, our first research test is underway with Align, offering members with low- or fluctuating-income levels a loan alternative through an income share agreement to give them an affordable way to borrow. Look for test results later this summer,” said Kaas. “We’re also excited to announce our next research test will begin soon with two different companies – Finhabits, exploring how different demographics approach saving for retirement and Steady, exploring the future of work – and we’re looking for credit unions to get involved today.”
The second round of testing will begin in July and run through December.
“The rapidly changing market means the credit union system of the future will not look the same as it does today, and we believe that this type of incubation testing eliminates the front end risk of testing new products and ideas for credit union members while accelerating decision-making and credit union growth,” said Foss. “Testing credit unions will have the opportunity to share feedback and insights that could impact the future of a particular product or service, or even the broader credit union space.”
CUNA Mutual group is a financially strong insurance and financial services company enabling people to make financial decisions that work for them. The company was built on the principle of “people helping people” and the belief that a brighter financial future should be accessible to everyone. For more information, visit www.cunamutual.com.
About CMFG Ventures
CMFG Ventures, LLC is the venture capital entity within CUNA Mutual Group that invests in strategic fintech and insurtech companies that support CUNA Mutual Group and the credit union industry. The company’s investment strategy focuses on financial technology, data analytics, financial education and protection, and digital channels to address gaps and opportunities within the insurance, credit union and financial services industries. Additional information about the company can be found at www.cmfgventures.com.
Filene Research Institute is an independent, consumer finance think tank dedicated to scientific and thoughtful analysis about issues affecting consumer financial wellness, the future of credit unions, and cooperative finance. Founded 30 years ago as a 501(c)(3) nonprofit organization, Filene moves credit unions forward with research and incubation support. For more information, visit filene.org and @fileneresearch. or contact Holly Fearing, 608.661.3758, firstname.lastname@example.org