DOVER, Del.–CU NextGen, a new CUSO that provides technology and automation solutions, is reporting a successful initial share offering during which it said it raised $9.25 million in capital from 10 different credit unions, exceeding its goal of $7 million.
CU NextGen said it has used the capital raised to purchase both intellectual property and 37 shares from ClaySys Technologies, an India-based technology firm and CU NextGen’s second co-founder. CU NextGen said the move is part of the plan to increase the level of representation of credit unions within its ownership and give them greater control over the organization.
CU NextGen’s new credit union owner-investors include Allegacy FCU, Altra FCU, Coastal Credit Union, Desert Financial Credit Union, Georgia’s Own Credit Union, Hudson Valley Credit Union, Michigan State University FCU, Meritrust Credit Union, Space Coast Credit Union, and Together Credit Union. All are also owners of Members Development Company (MDC), a research and development CUSO and co-founder of CU NextGen.
‘Increasingly Important’
“It is increasingly important to us that we choose strategic partners, specifically fintech partners, that strive to be at the forefront providing technology solutions,” said Chuck Purvis, president and CEO of Coastal CU. “Our investment in CU NextGen is a signal of our commitment to remain an innovative and agile financial institution.”
CU NextGen said it prides itself on delivering completely customized solutions to its clients to allow them to compete not only on member service, but also on member experience.
“Our goal is to give credit unions complete control over their member-facing and employee-facing experiences,” said Kent Zimmer, CEO of CU NextGen. “CU NextGen is very excited to be working to move beyond the start-up phase to embrace innovation and lead the transformation of the credit union industry.”
Ownership & Board
According to the CUSO, the investing credit unions now control 18% of CU NextGen shares. Members Development Co. owns another 20%, and 62% remain with ClaySys Technologies.
To mirror its new ownership structure, CU NextGen said it has created an additional board seat to represent its new credit union owners, which has been filled by Steve Koenen, CEO of Altra Federal Credit Union. Koenen now serves alongside Board Chairman Vinod Tharakan (managing director of ClaySys), Timothy Antonition (president and CEO of Space Coast Credit Union), James Nastars (president and CEO of Meritrust Credit Union), Tony Saldana (president of Transformant, previously Global Shared Services VP and CIO at P&G), and Jeff Kline (president and CEO of MDC).
‘Proud’ of Accomplishments
“I couldn’t be more proud of what the MDC network of credit unions has accomplished with this capital raise. We identified an unmet need for our industry and the members we served, and—together—we built a new CUSO and committed over $9 million to fulfilling that need. It really shows the strength of credit union collaboration and what we can accomplish together,” said Jeff Kline. “CU NextGen is now primed and ready to deliver next-generation technologies and services to credit unions nationwide, helping us all to keep the promises we’ve made to our members: that credit unions will always provide compelling and convenient services that will fulfill their 21stCentury financial needs and exceed their expectations.”