Credit Unions Bet Big on InvestiFi to Keep Members from Fleeing to Robinhood

Credit unions have been struggling to keep up with their members' growing interest in investing apps like Robinhood and Coinbase. In response, they've invested $20 million in a company called InvestiFi, which offers a platform that allows credit union members to buy and sell investments directly within their existing banking systems.

The investment was led by Vibe Credit Union, with participation from several other credit unions and BankTech Ventures. This is significant because the investors are not just any venture firms, they're institutions feeling the pain of losing members to these popular investing apps.

InvestiFi's platform allows users to access more than 6,500 stocks and ETFs, as well as crypto and stablecoin tools, all within their existing digital banking systems. The company was co-founded by Kian Sarreshteh in 2020 and has since grown rapidly, with several credit unions partnering with them this summer alone.

The growth is notable, but it's worth keeping things in perspective, Robinhood and Coinbase still have a significant advantage when it comes to distribution. However, InvestiFi's focus on making investing feel native within the banking app could be the key to retaining members.