Constellation Digital Partners LLC announced Wednesday that it has received a $3 million investment from Kinecta Federal Credit Union, a credit union based out of Manhattan Beach, California.
Constellation CEO Kristopher Kovacs closed the investment with Kinecta CEO Keith Sultemeier during the week of Oct. 16.
Raleigh-based Constellation has been developing a cloud-based software for credit unions. In July, it received a $3 million investment from Teachers Credit Union, based in South Bend, Indiana.
The company has been in a three-year research and development process. Kovacs was given a patent for his technology in May 2017. He saw a fundamental problem in the world of modern digital finance for credit unions that stemmed from the structured relationship they had with digital banking providers.
To date, eight credit unions, totaling $20 billion in assets and a user base of over 1.5 million, have partnered with this platform.
“We believe that Constellation can be a huge in modernizing the credit union industry,” said Sultemeier in a statement. “The open platform gives the industry potentially new sources of innovation, as well as means for easy collaboration between credit unions.”
App and digital service developers can also use this platform by creating titles, or services, and then credit unions can seek out and select services within the marketplace. There are a total of 21 digital service providers that have committed to creating services for the marketplace.