Nymbus lands $20m from Vystar Credit Union for new CUSO
Nymbus has secured a $20 million investment from Vystar Credit Union for its newly founded credit union service organisation (CUSO).
Nymbus launched its CUSO in March. The core banking provider hopes it will generate new revenue streams for those credit unions “under pressure to innovate”.
CUSOs are unique entities under US law. They allow groups of credit unions to invest in innovations or developments outside of their usual remit.
Credit unions use CUSOs for extra revenue, to reduce service and maintenance costs for systems and technology, or as a method for pooling resources and develop new products.
Vystar is the 16th-largest credit union in the US, and holds more than $10 billion in assets. Chad Meadows, chief operations officer at the firm, says it “works diligently to find the right partners”.
Joel Swanson, Vystar chief member experience officer, adds: “Today’s record investment speaks volumes to the confidence Vystar has placed in this new CUSO. Nymbus has come up with an entirely new approach for credit unions to innovate quickly for members that incorporates a truly sustainable growth strategy.”
Nymbus has had a busy start to 2021. Following the appointment of a new CEO and CFO in late 2020, in February 2021 it hired a chief product officer and chief alliance officer.
This was followed by news earlier this month it had appointed three more executives: Trish North as chief customer officer; Michelle Prohaska as chief compliance officer; and Crina Pupaza as chief people officer.
The core banking vendor has also received a handful of investments. Earlier this month Financial Service Capital topped up its backing to the tune of $15 million.
Nymbus also landed $53 million in February from Insight Partners, funnelled into its credit union project, Grow.