CMFG Ventures, the venture capital arm of CUNA Mutual Group, announced earlier this week it has partnered with the Filene Research Institute to launch the FinTech Catalyst Incubator to test new fintech products and services in credit unions.
CMFG reported that the FinTech Catalyst Incubator will test fintech and insurtech products and services that could fill credit union system gaps and create new opportunities for credit unions to innovate, grow, and better serve their members. Start-up companies interested in having their solutions tested can sign-up to become a test company. Brian Kaas, Managing Director of CMFG Ventures, stated:
“Tomorrow’s financial products and services are being funded, supported, and validated by CMFG Ventures today to improve the financial stability of credit union members in the future. We are committed to the success of our entrepreneur partners and that commitment goes beyond funding, which is why we’re so pleased to partner with one of the country’s leading research organizations, Filene Research Institute, to test companies and ideas for desirability, viability, and feasibility.”
Ryan Foss, Senior Director of the Filene Research Institute, also commented:
“We have a long and successful track record of executing incubators that test and scale solutions in the marketplace. Over the last five years with Filene, more than 100 credit unions have been involved in the creation, launch, testing and adoption of more than 15 products and service innovations across the U.S. and Canada. We’re excited to help position credit unions as drivers of innovation in the financial services industry.”
CMFG further noted that each test company will have its fintech product or service tested by a group of up to 12 credit unions of varying asset sizes, locations, and consumer demographics for six months. CMFG added:
“During this time, participating credit unions will receive tools and support from Filene Research Institute to test a unique hypothesis. These test companies and credit unions will have the opportunity to share feedback and insights throughout the testing period. Research findings, including next steps and launch recommendations for viable products, will be published by Filene Research Institute upon completion of the testing period.”