The memo
Why we’re building ModernFi.
To our partners, members, and friends,
Over the past five years, the use of deposits networks and reciprocal deposits has nearly tripled to over $450 billion. What was once a niche service has become foundational banking infrastructure, letting institutions of every size compete for and serve the businesses, public funds, nonprofits, and families that would otherwise bank only at a too-big-to-fail institution.
We are building ModernFi because this country is deeply indebted to its community and regional institutions, and would be far poorer without them. They are the drivetrain of the American economy. They provide the credit for small businesses to become big businesses, the mortgages for millions to fulfill the American Dream, and a safe place for people to keep their life savings.
These institutions do not compete on level ground. Their providers have rarely measured up — on pricing, on alignment, on service, or on technology. We set out to change that: to deliver fair pricing, to align our incentives with the institutions we serve, to provide the exceptional service they deserve, and to build technology that meets the standard of the best technology companies.
We structured the networks so they belong to the institutions that power them. Following the model of Visa at its founding, and the member-owned utilities like DTCC and The Clearing House that sit at the heart of the financial system, member institutions share in the upside of the rails they run on, while we operate them in the background.
More than 700 institutions have already joined, with new institutions signing every week. We intend to build a coalition that sits at the heart of American banking, and to ensure its stable operation for decades, so institutions of all sizes can continue to compete, grow, and thrive.
We are building systemically important financial market infrastructure for the betterment of the community and regional institutions that power this country.
