Members Mobile CUSO has secured a strategic investment from four credit union investors, including The Reseda Group, the wholly owned credit union service organization of MSU Federal Credit Union. Financial terms of the investment were not disclosed.
The funding will support the launch and expansion of Members Mobile’s nationwide 4G and 5G wireless service designed specifically for credit unions. The platform is intended to help participating institutions attract new members, deepen existing relationships and provide additional savings opportunities.
Members Mobile operates as a mobile virtual network operator using an established nationwide wireless network. It combines mobile phone plans with financial products and digital account-opening capabilities offered through participating credit unions.
The company created Members Mobile CUSO to align its development and ownership with the credit union industry. Credit union service organizations allow institutions to invest collectively in technology and services that may be difficult to build independently.
The platform enables credit unions to bundle checking accounts and other financial services with Members Mobile wireless plans. Customers can activate service through the company’s mobile application while connecting the plan to an existing credit union account or opening a new account digitally.
Members Mobile’s proprietary VIMplicity platform integrates mobile activation with account-opening technology from MeridianLink. The process is designed to let customers complete enrollment through a single application without visiting a physical branch.
For credit unions, the platform is intended to support both member retention and new customer acquisition. Members Mobile also expects the service to create opportunities for non-interest income and more frequent digital engagement.
The wireless plans include nationwide service, full-speed data and premium VIM Support. Members can also receive monthly Cash ShareBacks deposited directly into their credit union accounts.
The company’s Data SafetyNet feature provides additional protection related to mobile data usage. Members Mobile positions these benefits as part of a simple and transparent wireless offering supported by a financial institution the customer already trusts.
The Reseda Group invests in financial technology and credit union service organizations on behalf of MSU Federal Credit Union. Members Mobile said its participation provides validation from an established investor within the credit union ecosystem.
Three additional credit union investors also participated in the financing. Members Mobile intentionally selected a limited group of institutional partners to keep the company’s strategy aligned with the priorities of credit unions and their members.
Members Mobile recently launched its service with MSU Federal Credit Union as its founding credit union partner. Additional institutions representing more than 2.5 million members have signed agreements supporting the company’s early expansion across the United States.
The company believes mobile service plans are becoming an increasingly important engagement tool for financial institutions. Fintech companies and digital banks are beginning to combine connectivity products with banking relationships to increase customer interaction and loyalty.
Members Mobile is adapting that strategy for the credit union market. Its goal is to let credit unions offer mobile connectivity while maintaining their emphasis on member savings, transparency and personalized service.
KEY QUOTES:
“The Reseda Group is one of the most credible voices in credit union investment and CUSO innovation. Their decision to invest in Members Mobile CUSO signals that the credit union community is ready to embrace creative digital tools to serve and attract members. Three more credit unions following Reseda’s lead further underscores the Company’s alignment with the credit union community’s drive to save members money and deliver extraordinary service. It was always by design that we wanted to have a selected group of Credit Unions to ensure alignment from day one.”
Gary Brandt, Chairman of Members Mobile CUSO
“Securing investment from four credit union investors, including The Reseda Group, validates what we have built from within the credit union ecosystem, and accelerates what we can do next. Globally, fintechs and neobanks are embracing mobile service plans as the next frontier to service and engage customers. We are pleased to bring these advanced capabilities to the credit union movement, ensuring that credit unions can remain relevant in an increasingly digital marketplace. Thanks to the investment in Members Mobile CUSO, credit unions can own and shape the future of their members connectivity with the trust, values and transparency that their members deserve.”
Luis Jimenez-Tunon, Co-Founder of Members Mobile
