Three existing credit union partners of the Troy, Mich.-based CUSO Mahalo Banking led a $20 million round of funding for the 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, Del.). Mahalo’s announcement did not include the specific amounts invested by each credit union.
According to Mahalo, the additional capital will primarily be funneled into research and product development. The CUSO’s flagship online and mobile banking platform, which was developed by individuals with backgrounds in credit unions and security, provides deep integration to core processing, security tools and a robust feature set across all delivery channels for an omnichannel experience, it said.
Phil Buell, president/CEO of Superior Credit Union, stated, “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 business philosophy; they are member-centric, critically-focused and have strong values matched with unparalleled integrity. We have more than 100,000 members and the investment 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 are banking online and via their mobile phones. We thought we could invest in another branch or meet our members where they do business, so it was a sound business decision to invest in the biggest branches they use – mobile and online. Mahalo is our partner in bringing solutions to credit unions to enable them to bank the way they want to bank. The solution is sustainable and built for the long term.”
Mahalo President/CEO Jim Stickley stated, “We are excited to be partnering with Superior Credit Union, Park Community and Dover Federal. They appreciate our vision as a CUSO to advance our platform to provide the best banking experience possible to all credit unions. We did not look for VC funding – we wanted a credit union-focused investment. This ensures that we are providing the digital banking services that today’s savvy members demand in everyday banking needs and that credit unions have what they need to retain and grow their member base. These credit unions share our vision to have the best digital banking solution on the market.”
“Digital banking usage continues to outweigh 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 that have yet to take steps to modernize their support and engagement strategies are already behind.”