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CU NextGen raises $9.25 million to secure future of credit union innovation

CUSO assumes full control over its technology moving forward

DOVER, DEL (June 22, 2021)CU NextGen, a CUSO providing technology and automation solutions, has announced a successful initial share offering during which the new company raised $9.25 million of capital from 10 different credit unions, exceeding its goal of $7 million.

CU NextGen’s new credit union owner-investors include Allegacy Federal Credit Union, Altra Federal Credit Union, Coastal Credit Union, Desert Financial Credit Union, Georgia’s Own Credit Union, Hudson Valley Credit Union, Michigan State University Federal Credit Union, Meritrust Credit Union, Space Coast Credit Union, and Together Credit Union. All are also owners of Members Development Company (MDC), a research and development CUSO and co-founder of CU NextGen.

CU NextGen has used the capital raised to purchase both intellectual property and 37 shares from ClaySys Technologies, an India-based technology firm and CU NextGen’s second co-founder. This is part of CU NextGen’s plan to increase the level of representation of credit unions within its ownership and give them greater control over the organization.

Coastal Credit Union is one of many credit unions that value the kinds of innovations that CU NextGen is bringing to the credit union space.  “It is increasingly important to us that we choose strategic partners, specifically FinTech partners, that strive to be at the forefront providing technology solutions,” says President and CEO Chuck Purvis.  “Our investment in CU NextGen is a signal of our commitment to remain an innovative and agile financial institution.”

CU NextGen prides itself on delivering completely customized solutions to its clients in order to allow them to compete not only on member service, but also on member experience. “Our goal is to give credit unions complete control over their member-facing and employee-facing experiences,” said Kent Zimmer, CEO of CU NextGen. “CU NextGen is very excited to be working to move beyond the start-up phase to embrace innovation and lead the transformation of the credit union industry.”

These future-thinking credit unions now control 18% of CU NextGen shares. Members Development Company owns another 20%, and 62% remain with ClaySys Technologies. To mirror its new ownership structure, CU NextGen has created an additional board seat to represent its new credit union owners, which has been filled by Steve Koenen, CEO of Altra Federal Credit Union. Koenen now serves alongside Board Chairman Vinod Tharakan (Managing Director of ClaySys), Timothy Antonition (President and CEO of Space Coast Credit Union), James Nastars (President and CEO of Meritrust Credit Union), Tony Saldana (President of Transformant, previously Global Shared Services VP and CIO at P&G) and Jeff Kline (President and CEO of MDC).

“I couldn’t be more proud of what the MDC network of credit unions has accomplished with this capital raise. We identified an unmet need for our industry and the members we served, and—together—we built a new CUSO and committed over $9 million to fulfilling that need. It really shows the strength of credit union collaboration and what we can accomplish together,” said Jeff Kline. “CU NextGen is now primed and ready to deliver next-generation technologies and services to credit unions nationwide, helping us all to keep the promises we’ve made to our members: that credit unions will always provide compelling and convenient services that will fulfill their 21st Century financial needs and exceed their expectations.”


About CU NextGen

CU NextGen is the CUSO dedicated to bringing next-generation technology to credit unions, helping them improve the service delivered to their members, the daily experiences of their staff members, and the efficiency of their operations. CU NextGen is a partnership between Members Development Company, a consortium of nearly 70 large and future-focused credit unions, and ClaySys Technologies, a technology company with leading products in the no-code application development, robotic process automation (RPA), and artificial intelligence spaces. Using these technologies, CU NextGen has built several cutting-edge solutions, including the premier Member Relationship Management platform which includes CRM, RPA, Apps & Workflows, Knowledgebase, Chatbot, and Ticketing. Additional solutions include video banking and conversational AI, among others. CU NextGen builds on the work these two innovators have implemented within MDC’s collaborative network of progressive credit unions and represents our shared strategic initiative to deliver next-gen technology beyond the MDC network to credit unions across North America.

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Merideth Miller
M2 The Agency
281.882.3045
pr@m2theagency.com

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