US fintechs Core10 and Union Credit secure funding
Two fintech companies in the US – Core10 and Union Credit – have reported funding this week.
Core10 raises $6.5m in Series B
Core10, which provides lending and account opening products and software development services to community banks in the US, has closed a $6.5 million Series B funding round to support the expansion of its Accrue platform and banking integration services.
The capital round brings the company’s total funding to $12.5 million and is led by Patriot Financial Partners, with participation from JAM FINTOP and the Independent Community Bankers of America (ICBA).
“While many banks may not think they have the time or resources to elevate their digital experience, Accrue offers an efficient, affordable way to implement cutting-edge technology,” comments Charles Potts, ICBA executive vice president and chief innovation officer.
The company also highlights its “Hereshore” model of staffing that is entirely North America based (US and Canada), which enables it “to maintain competitive servicing costs and stronger security measures”.
Core10 was founded in 2016 and is based in Tennessee. In 2017, it raised $3.5 million in a Series A round.
Union Credit lands $5m for launch
Union Credit, a start-up that describes itself as “the first marketplace for credit unions to deliver perpetual credit approval and one-click loan activation to new member prospects”, has come out of stealth with $5 million in seed funding.
The round was led by CMFG Ventures and supported by Marin Sonoma Impact Ventures (MSIV), Array, and other “strategic fintech influencers”.
The California-based company says it will use this investment to build out its digital lending marketplace, SDK, and a direct-to-consumer app where consumers can manage perpetual offers of credit from local lenders that want to serve them.
Union Credit has also partnered with CuneXus, a wholly-owned technology subsidiary of CUNA Mutual Group. CuneXus’ co-founder, Dave Buerger, is launching his new company with colleague Barry Kirby to leverage this partnership and offer an embedded digital storefront model.
Union Credit will be the exclusive partner of CuneXus to offer this marketplace and initially will focus on the nearly 250 credit unions already leveraging CuneXus. These credit unions serve communities throughout the US and represent approximately 37 million members.
Brian Kaas, president and managing director at CMFG Ventures, believes the Union Credit model “has the potential to completely change the way credit unions grow, allowing them to compete with fintechs and large financial institutions in their communities during the purchase experience”.
