CUNA Mutual Group and WithClutch team up to help credit unions
By Edlyn Cardoza
- CMFG Ventures
- Consumer loans
- credit unions
CUNA Mutual Group recently announced its partnership with WithClutch, a FinTech platform aimed at enabling consumers to refinance high rate consumer loans through a digital and frictionless process. The platform turns every member touchpoint into a recovery opportunity, helping credit unions dramatically increase the share of existing member wallets.
Through this partnership, CUNA Mutual Group will strive to bring WithClutch to more credit unions. CMFG Ventures, the venture capital arm of CUNA Mutual Group, has invested alongside Andreessen Horowitz in WithClutch’s Series A funding round to drive its continued growth.
Founded by FinTech entrepreneurs Chris Coleman and Nicholas Hinrichsen, WithClutch helps credit unions better serve their members by leveraging lower rates combined with a seamless user experience. The founders sold their former business to Carvana in 2017, helped the digital car retailer grow exponentially, and launched WithClutch in 2020. The company’s mission is to help Americans save billions of dollars on their debt.
“Our belief that a better financial future should be available to everyone aligns perfectly with WithClutch’s mission to tackle income inequality. Together, we will work to create more value for credit union members. WithClutch’s technology can help credit unions transform their relationship with their members and solidify their competitive advantage in an increasingly digital environment,” said Brian Kaas, President and CEO of CMFG Ventures. “The partnership and investment in WithClutch reinforces CUNA Mutual’s ongoing commitment to providing end-to-end digital solutions that help more consumers confidently make financial decisions that are right for them.”
The software solution enables credit unions to identify high-interest loans that members hold outside of the credit union and offer alternative loans that reduce members’ interest rates and monthly payments. With this fully automated process, credit unions can initiate loans in minutes, reduce loan officer burden, minimize paperwork and increase share of wallet with existing members.
“We are on a mission to fight income inequality, and credit unions are the perfect partner to do that,” said Nicholas Hinrichsen, CEO and co-founder of WithClutch. “Since we launched WithClutch, we have grown the business to process billions of dollars in consumer loan applications. We are humbled by CMFG’s vote of confidence and excited to support the movement.
Launched in 2016, CMFG Ventures is the venture capital arm of CUNA Mutual Group. CMFG Ventures is home to two investment funds, one focused on strategic investments and partnerships to connect FinTechs with credit unions and financial institutions, and the other focused on seed investments in FinTechs with various founding teams .
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