Introducing: The CUSO Corner
The ModernFi CUSO network continues to grow, now serving 131 credit unions across 41 states. The CUSO Corner is our regular briefing on what's happening across the network: network snapshots, regulatory developments, case studies from partner credit unions, and the strategies shaping how credit unions compete for deposits. We look forward to welcoming additional credit unions into the network and featuring their work here in future editions.
Network at a Glance
A snapshot of the ModernFi CUSO network across 41 states.
Recent News
Regulatory developments and updates shaping the credit union landscape.
NCUA Confirms Reciprocal Deposits Are Permissible for Credit Unions
On March 18, 2026, the National Credit Union Administration (NCUA) publicly confirmed that reciprocal deposits are permissible for federally insured credit unions (FICUs), as long as the program is conducted both safely and soundly. The release, published in the NCUA's Brokered and Reciprocal Deposits FAQ, marks the first time the regulator has publicly addressed the availability of reciprocal deposit networks for credit unions. The announcement validates what ModernFi CUSO has advocated for and built on behalf of the credit union community.
A Historic Moment for Credit Unions
Before this guidance, the 4,000+ credit unions across the United States had no formal public regulatory framework confirming access to reciprocal deposit programs and the benefits they provide. ModernFi CUSO brought the first reciprocal deposit network to the credit union ecosystem in 2024. Before then, credit unions and their members with balances above standard NCUA insurance limits, including businesses, nonprofits, and public entities, had limited options. The work of ModernFi CUSO and the acknowledgment from the NCUA mark a major milestone in the ability for credit unions to better serve high-value member relationships.
The language below is taken directly from the NCUA FAQ and highlights the permissibility for credit unions and how both low-income designated (LID) and non-LID credit unions can leverage reciprocal deposits.
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Directly from the NCUA FAQ
Are reciprocal deposits permissible for FICUs?
On low-income designated credit unions:
On non-LID credit unions: |
Member Spotlight
Hear perspectives and results from network CUs.
Webinar Recap
Competing for Deposits: How ModernFi CUSO Drives Impact for Credit Unions
"We met with ModernFi CUSO every week. They got us comfortable with pushing and pulling money to and from the network and helped us get the product live. If we have any questions, we send an email to the team and usually get one back within 10 minutes."
Kristie McLane
Director of Community Business Development, Innovations Financial Credit Union
"What I like as a CFO is the flexibility on the liquidity side. I like the ability to be able to manage our balance sheet and adjust rates we offer to our membership. It gives us a lot of flexibility and something we can offer that nobody else in our market is offering."
Jeremy Hinton
Chief Financial Officer, Innovations Financial Credit Union
"We like to use this as another tool in our toolbox. You don't have to get statements from four or five institutions and can just get one from us, which we found to be an attractive value proposition."
Scott Kaulukukui
President & Chief Executive Officer, Lōkahi Federal Credit Union
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Case Studies How credit union partners are using ModernFi CUSO to grow deposits, serve high-value members, and compete in their local markets. |
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About ModernFi CUSO ModernFi CUSO is a credit union service organization built to help federally insured credit unions grow deposits, serve members with larger balances, and access reciprocal deposit networks that were previously unavailable to the credit union community. Working alongside credit unions as a partner, ModernFi CUSO helps institutions ranging from $18 million to $19 billion in total assets compete for business deposits, retain public entity funds, and deliver expanded coverage options to their members. Credit unions working with ModernFi CUSO span the country, serving members across communities of all sizes and asset ranges. |
Insurance provided through program credit unions (subject to certain conditions). ModernFi, Inc., ModernFi Deposit Services LLC, and ModernFi CUSO LLC are not NCUA-insured credit unions. Deposit insurance covers the failure of an insured credit union, not ModernFi or ModernFi CUSO. Deposits are placed at insured network institutions and are eligible for pass-through insurance up to $250,000 per institution. Certain conditions must be satisfied for pass-through NCUA deposit insurance coverage to apply. A list of participating credit unions appears at https://www.modernfi.com/credit-union-list.
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