A new fintech plans to offer speedy loan approvals and one-click loan activation for credit union members after raising $5 million in initial funding.
Union Credit in Santa Rosa, Calif., said in a press release that the seed funding was led by CMFG Ventures and was supported by Marin Sonoma Impact Ventures, Array and other “fintech influencers”
The fintech said it will use the funding to build out its digital lending marketplace and a direct-to-consumer app where consumers can manage credit offers.
Union Credit said it has partnered with CuneXus, a subsidiary of CUNA Mutual Group that is currently producing over $27 billion in loans annually. About 250 credit unions use the CuneXus platform.
“Credit unions thrive on their long-lasting member relationships, but acquiring new relationships has always been a challenge,” Dave Buerger, Union Credit’s CEO and a co-founder of CuneXus, said in the release.
“Union Credit advocates for credit unions on a national scale, putting them in front of consumers at their point of need,” Buerger added. “It combines the local, competitive and advantageous offers that credit unions are known for and gives them the sophisticated platform they need to amplify existing digital services and reach new audiences.”