US core banking vendor Nymbus sets up new business for credit unions

Nymbus, a US-based core banking vendor, has set up a new business to provide financial services to its credit union customers and their members.

Called a credit union service organisation (CUSO), the new entity – dubbed Nymbus CUSO – will focus on connecting credit unions with fintech offerings.

“Credit unions have an immediate opportunity to leverage niche digital banking approaches”

The core banking provider hopes the CUSO will generate new revenue streams for those credit unions under pressure to innovate and compete with digital disruptors.

John Janclaes, Partners Federal Credit Union’s former president and CEO, will lead the new venture.

A CUSO is usually owned at least in part by the credit unions it serves. FinTech Futures reached out to Nymbus to understand whether there are any minority stakeholders in Nymbus CUSO.

A spokesperson replied: “Nymbus wholly owns Nymbus CUSO at this time”.

Tapping “niche” markets

“Credit unions have an immediate opportunity to leverage niche digital banking approaches to create new revenue streams and expand reach,” says Janclaes.

Nymbus’ chairman and CEO, Jeffery Kendall, adds that the new CUSO “moves past traditional vendor thinking” and creates “supportive structures for credit unions ready to grow and reach new niche markets”.

Some of the most “niche” digital banking markets identified by US start-ups include former prison inmates and pet parents.

Nymbus established Nymbus Labs last month to help credit unions better tap some of these segmented markets.

The new platform is designed “to systematically remove barriers to digital banking innovation” – a common aim with newly-established Nymbus CUSO.

Customers can use Nymbus Labs to either buy, build, or grow a digital bank.

Fresh capital and leadership

In February, the fintech landed $53 million in a round led by its existing investor Insight Partners. The fresh capital marks its largest funding to-date.

Nymbus also reshuffled its executive team back in October 2020, obtaining a new chief executive officer in Jeffery Kendall, and Jim Modak, as its new chief financial officer (CFO).

Kendall, a former executive at rival Temenos, replaced Scott Killoh, Nymbus’ founder, who moved into an executive chairman role.

Modak succeeded former Nymbus president, David Mitchell. Mitchell left the firm to join Liberty Bank as chief digital officer.

Under this new leadership, the banking vendor signed a deal with PeoplesBank towards the tail end of 2020.

Read next: US core banking vendor Nymbus lands $53m top-up led by existing backer

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