InvestFi raises 20 million for credit union investing platform
InvestFi will use the funding to expand embedded investing for credit unions and community banks seeking to retain member deposits.
By Rafael Ortiz · Fintech Correspondent
· 3 min read
InvestFi raises 20 million dollars in new funding to expand an embedded investing platform for U.S. credit unions and community banks, the company said in a July 29 press release. The capital is aimed at helping smaller financial institutions offer investing inside their own online banking channels, a move InvestFi says can reduce the flow of deposits to outside brokerage, crypto and investment apps.
The credit union service organization said the round was led by Vibe Credit Union. Other consumer-focused financial institutions also took part, alongside institutional investors BankTech Ventures and Navari, according to the release.
InvestFi said its platform has increased its signed financial institutions from four to more than 60 in less than 18 months. Founder and Chief Executive Kian Sarreshteh said in the release that the funding will support scaling the platform and increasing use among the customers and members of those institutions.
What does InvestFi do for credit unions?
InvestFi provides technology that lets credit unions and community banks embed investing within digital banking. A credit union service organization, or CUSO, is a service provider built to support credit unions with functions that can include technology, compliance or member-facing products.
The InvestFi platform allows users to invest from checking or savings accounts without first moving money to an outside brokerage or crypto platform, the company said. That structure keeps the investing experience inside the financial institution’s digital interface while connecting account balances to investment activity.
The company said its offering includes fractional investing in stocks and exchange-traded funds, guided investing, individual retirement accounts, cryptocurrency trading and stablecoins. InvestFi said it plans to add more products as the platform grows.
For credit unions and community banks, the commercial rationale is deposit retention and member engagement. When customers transfer cash to third-party investing apps, funds may leave the primary banking relationship and remain elsewhere. InvestFi cited research it released at its 2024 launch showing that 75 percent of investors use popular third-party apps, and that 24 percent of investors do not move money from investment accounts back into bank accounts.
Vibe Credit Union Chief Operations and Strategy Officer Jeff Pascoe said in the release that the investment reflects the credit union’s view that member relationships should extend across saving, borrowing and wealth-building. He said credit unions have long earned trust by helping members save, borrow and pursue financial goals, and that wealth-building is the next area for that relationship.
Why are credit unions adding outside technology partners?
Credit unions are under pressure to match the digital tools offered by larger banks, brokerages and financial technology companies. A PYMNTS Intelligence report, “Built to Lead or Losing Ground? AI, Mobile and the Member Retention Imperative for Credit Unions in 2026,” found that member expectations are changing quickly and that leading institutions are using external technology partners to speed product development.
InvestFi’s financing places embedded investing within that broader shift. Rather than building investment infrastructure alone, credit unions and community banks can use a specialist provider to add brokerage-style features inside existing digital banking relationships, subject to the products and rollout plans described by InvestFi.
This story draws on original reporting from PYMNTS.
