InvestiFi Raises $20M to Bring Embedded Investing to Credit Unions

InvestiFi, a U.S.-based provider of embedded investing solutions, has raised $20 million to scale its platform for community financial institutions. The funding round was led by one of its own clients, Vibe Credit Union, signaling a strategic alignment between the technology provider and its end users.

The capital injection will expand a platform that allows credit unions and community banks to integrate digital investing tools directly into existing online banking interfaces. The round included participation from BankTech Ventures, Navari, and several other consumer-focused financial institutions. The platform enables members to access fractional investing in stocks and ETFs, guided investing, IRAs, cryptocurrency trading, and stablecoins.

The Battle for Deposits

Launched in 2024, InvestiFi operates as a Credit Union Service Organization (CUSO). This structure addresses a critical leak in the community banking model: the loss of deposits to external, third-party investment applications. When members move funds to external brokerages, the original financial institution loses both the assets and the primary engagement touchpoint.

The urgency of this shift is highlighted by data indicating that 24% of investors never transfer money from their investment accounts back into their bank accounts. By embedding these tools, InvestiFi allows institutions to keep assets within their own ecosystem. The growth trajectory has been rapid; the company has expanded from four signed institutions to over 60 in less than 18 months.

Strategic Implications

This move represents a broader effort by community financial institutions to reclaim member engagement from dominant fintech apps. By utilizing the CUSO model, credit unions can co-invest in the vendors they employ, ensuring that technology is built to meet the specific needs of the credit union sector rather than generic market demands.

Kian Sarreshteh, CEO and Founder of InvestiFi, stated that the capital raise will allow the company to maximize adoption and pull account holders and deposits back from third-party platforms. Jeff Pascoe, Chief Operations and Strategy Officer at Vibe Credit Union, added that the next phase of this partnership focuses on helping members build wealth through a trusted relationship.

Future Outlook

As InvestiFi scales, the industry will watch whether other community banks follow the CUSO investment model to secure their deposit bases. The primary challenge remains the speed of adoption among smaller institutions that may struggle with the technical transition to embedded finance. While the initial growth to 60 institutions is significant, long-term success depends on the platform's ability to maintain member loyalty in an increasingly fragmented financial landscape.