A new financial-technology incubator is launching in Madison that's aimed at helping startups launch products and services geared toward credit unions.
CMFG Ventures, the venture capital arm of Madison-based CUNA Mutual Group, is working with Filene Research Institute, a consumer finance think tank, to launch the FinTech Catalyst Incubator. The incubator is designed to test new technologies for credit unions, and create new opportunities for credit unions to innovate and grow.
Each startup selected to the program will have its product tested by a group of up to 12 credit unions for six months. The startups and credit unions will also be able to share feedback and insights throughout the testing period, and the research findings will be published by the Filene Research Institute.
The incubator is looking for fintech and insurance-tech startups, and interested companies are encouraged to apply here.
The incubator's first research test is currently underway with Align, a Chicago startup that gives credit union members with low income levels the ability to borrow money through an income share agreement.
CMFG Ventures has invested in Align and several other fintech startups, including Chicago-based companies like Rippleshot, MortgageHippo and ForeverCar. It typically makes investments of $1 to $5 million in Series A or B rounds.
"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," Brian Kaas, managing director of CMFG Ventures, said in a statement.
