Three existing partner credit unions of Troy, Michigan-based CUSO Mahalo Banking led a $20 million financing round for CUSO that closed in July, Mahalo announced Tuesday.
The three investors were Superior Credit Union ($1.4 billion, Lima, Ohio), Park Community Credit Union ($1.2 billion, Louisville, Ky.) and Dover Federal Credit Union ($626 million, Dover, Of the.). Mahalo’s announcement did not include the specific amounts invested by each credit union.
According to Mahalo, the additional capital will primarily be spent on product research and development. CUSO’s flagship online and mobile banking platform, which was developed by people with experience in credit unions and security, offers deep integration with core processing, security tools and a robust feature set across all distribution channels for an omnichannel experience, he said.
Phil Buell, President/CEO of Superior Credit Union, said, “We were early adopters of Mahalo Banking and after implementation, our members let us know that the solution not only met their needs, but also exceeded their expectations. Mahalo aligns with our corporate philosophy; they are member-centered, critical-thinking, and have strong values with unparalleled integrity. We have over 100,000 members and investing in Mahalo is an investment in our members’ banking future.
Buell continued, “Superior’s long-term strategic goal is to be digital first. Our members do their banking online and through their mobile phones. We thought we could invest in another branch or meet our members where they do business. So it was a smart business decision to invest in the biggest branches they use – mobile and online. Mahalo is our partner in providing solutions for credit unions to enable them to bank the way they want. The solution is durable and built for the long haul.
Mahalo President and CEO Jim Stickley said, “We are delighted to partner with Superior Credit Union, Park Community and Dover Federal. They appreciate our vision as CUSO to advance our platform to provide the best possible banking experience for all credit unions. We didn’t seek venture capital funding – we wanted a credit union-focused investment. This ensures that we provide the digital banking services today’s savvy members demand for their day-to-day banking needs and that credit unions have what they need to retain and grow their membership base. These credit unions share our vision of having the best digital banking solution on the market.
“The use of digital banking continues to trump the branch as the primary channel for members to engage with their credit union,” Stickley continued. “The future of member service is digital, and those who haven’t yet taken steps to modernize their support and engagement strategies are already behind.”