Amount Secures $30 Million to Expand Into Credit Union Market

Banking technology firm Amount has successfully raised $30 million in equity capital to further its expansion into the credit union sector. This strategic move is part of Amount's broader vision to enhance digital banking solutions for credit unions, a sector it sees as ripe for growth and innovation. The funding round, announced on August 15, was highlighted by the inclusion of Curql, a collective of credit unions that invests in FinTech companies, as a new strategic investor. This partnership underscores the mutual interest in advancing digital banking capabilities within the credit union industry.

Adam Hughes, CEO of Amount, emphasized the significance of this expansion, stating that credit unions have a unique opportunity to better serve their members through digital channels, particularly in the areas of credit product origination and deposit account management. Hughes highlighted Amount's historical success in working with large enterprise banks and expressed confidence that this new capital infusion will enable the company to bring significant value to thousands of credit unions across the United States, thereby strengthening the relationships between these institutions and their members.

The $30 million raised will be directed toward enhancing Amount's artificial intelligence (AI) and machine learning capabilities, which are crucial for the company's continued growth and ability to offer cutting-edge digital banking solutions. This investment is seen as a key step in Amount's strategy to deepen its presence in the U.S. credit union market, building on its existing partnerships and technological innovations.

Since 2022, Amount has collaborated with Velera, the largest credit union service organization in the country, to provide digital credit card origination solutions. Earlier this year, the partnership expanded with the launch of a digital lending suite known as Origination Solutions. This suite is designed to address the increasing demand for immediate and frictionless digital experiences among consumers, particularly for high-frequency products like credit card loans and digital account openings. Velera has identified several challenges in these areas, including the need for greater automation, improved fraud prevention, and the integration of modern technology—issues that Amount's solutions are designed to address.

The expansion into the credit union sector comes at a time when credit unions are facing increasing competition from Big Tech companies, which are becoming significant players in the financial services industry. A recent study by PYMNTS Intelligence, conducted in collaboration with Velera, found that 56% of top-performing credit unions view Big Tech firms as key competitors. This competition is expected to intensify as regulatory bodies, like the Consumer Financial Protection Bureau (CFPB), consider extending supervision to Big Tech firms that process more than 5 million transactions annually—a threshold that includes giants like Apple and Amazon.

As the financial services landscape undergoes rapid changes, Amount's strategic focus on expansion and investment in advanced technologies is poised to be instrumental in helping credit unions thrive amidst growing competition. By leveraging cutting-edge AI and machine learning capabilities, Amount aims to empower credit unions to enhance their digital offerings, streamline operations, and better serve their members with innovative, user-friendly solutions. This approach not only strengthens the value proposition of credit unions but also equips them with the tools needed to compete effectively against larger financial institutions and Big Tech companies that are increasingly encroaching on their market share. As these dynamics continue to shift, Amount's commitment to driving digital transformation in the credit union sector ensures it remains a key player in shaping the future of financial services.