ModernFi, a US-based fintech start-up, has raised $18.7m in a Series A funding round to drive deposit growth at community as well as regional banks.

The financing round, led by Canapi Ventures, also had participation from Andreessen Horowitz, Remarkable Ventures, First Horizon, Huntington National Bank, and Regions.

Founded in 2022, ModernFi offers banks end-to-end deposit management built on a contemporary technological framework and a foundation rooted in compliance.

The firm’s deposit network helps banks to expand, retain, and manage their deposit base by sourcing deposits, sweeping funds, and delivering additional security to depositors.

Besides, ModernFi’s solutions help banks gain and maintain large-value depositors, drive growth, and increase stability of their balance sheets.

Furthermore, the firm increases usability by streamlining onboarding and operations for banks and their clients.

Canapi Ventures co-founder and general partner Neil Underwood said: “The industry needs a next-generation solution for reciprocal deposits that is seamlessly integrated into online banking, built both API-first and cloud-native.

“ModernFi has built exactly that, at the exact right time and place. Canapi’s strong bank network and deep fintech experience will help accelerate significant deposit flows through the platform.”

ModernFi’s new capital adds to a $4.5m seed round that was spearheaded by Andreessen Horowitz. The start-up has raised more than $23m to date following the latest infusion of capital.

The new round advances the company’s mission to bring end-to-end deposit management to financial institutions of all sizes. It will help institutions to prosper in a rapidly changing banking environment, said the company.

ModernFi CEO and cofounder Paolo Bertolotti said: “Community and regional banks form the foundation of the American economy, providing an outsized amount of credit and banking services to critical industries and areas that might otherwise be overlooked.

“Faced with fundamental shifts in the behavior of deposits, institutions benefit from modern tools to manage and grow their funding. ModernFi has been privileged to help institutions of all sizes protect their deposit base, and the team looks forward to continuing its support of the sector.”