RALEIGH, N.C.—Seven credit unions led by Coastal CU here have been joined by a number of other partners to launch Constellation Digital Partners, LLC, a CUSO designed to deliver a “revolutionary” software platform that will transform the future of digital banking for credit unions and members.
Constellation has been awarded a patent for its new technology. As CUToday.info reported, the new CUSO also won first place in The Next Big Idea Competition at the Annual Network Conference for the National Association of Credit Union Service Organizations (NACUSO).
“Constellation Founder and Coastal Credit Union Chief Information Officer Kristopher Kovacs, realized there was a fundamental problem in modern digital financial services. Despite a recent boom of potential financial technology partners, credit unions cannot access them because of the legacy structure of credit union relationships with current digital banking providers,” Coastal explained.
The creation of the CUSO and platform are the result of a three-year long research and development effort, which culminated in the filing of a patent in November 2015. Constellation is currently building out its cloud-based financial services marketplace and platform that will allow credit unions and members to choose which services to use inside of a secure banking experience.
To date, seven credit unions spanning the nation and totaling $12 billion in assets have committed to investing in the platform, Coastal said. The seven credit unions are: Coastal Credit Union, CFCU, Meritrust Credit Union, Farmers Insurance Federal Credit Union, Georgia’s Own Credit Union, Affinity Federal Credit Union and Nusenda Credit Union.
Combined, the credit unions represent more than 1.1 million members. Constellation is continuing to offer investment opportunities to make ownership of the platform more accessible for a variety of credit unions, Coastal said. Co-Op Financial Services and CUNA Mutual are also investing in the new CUSO.
“In addition, the marketplace will create a new service-based economy where interested digital service developers can also get involved and become service providers and partners on the new platform,” Coastal said. “Developers can create tiles or services, then credit unions can seek out and select services within the marketplace. Five service provider partners—Telrock, Connect Financial Software Solutions, Obloco, Corporate One Federal Credit Union, MicroDynamics Group, Gro Solutions, Xtensifi and Insuritas—are already on board.”
“Credit unions have been struggling to provide next-generation services and it’s a disconnect both current and potential members have noticed,” said Kovacs. “Today’s fast-paced digital age calls for new services and we have the answer. Constellation redefines what credit unions offer. It means credit unions finally have the freedom to not only survive, but thrive; to not only compete, but win. We vet the services first, so members can trust they are the best of the best.”
The first version of Constellation is slated to launch in the fourth fiscal quarter of this year. Coastal said that interested credit unions, investors, developers and service providers who would like to get involved, can visit www.constellation.coop to learn more, or can speak with the Constellation team at the AXFI conference in Minneapolis, Minn., June 11-14.