BOCA RATON, Fla., — Black Dragon Capital said it has invested in two companies that can “help credit unions drive innovation and eliminate obsolete infrastructure”: Open Banking Solutions and PayOnward.
The companies will include some familiar names for some in credit unions.
Black Dragon said the newly formed credit union limited partner advisory board has approved an investment by Black Dragon into two companies addressing the critical needs of the credit union and community based financial institution market.
‘Outdated & Inflexible’
“For too long, we believe that credit unions and other community based financial institutions were limited in their ability to execute their strategy due to outdated, inflexible and costly vendors that seem more interested in punitive contract terms, and a divisive relationship than success for credit unions,” Black Dragon said in a statement. “There have also seen several new entrants with little experience in enterprise processing or payments that have delivered failed conversions, severe reputational damage and event fines against well-meaning institutions.
“These two investments are intended to put an end to this and put credit unions on their rightful path of collaboration, and success with partners who are experienced in delivering success in these critical areas.”
About the Two Companies
According to Black Dragon, Open Banking Solutions and PayOnward are “promising companies that can give credit unions a competitive edge by allowing them to speed up innovation, get rid of vendor dependency constraints, and operate more efficiently.”
Open Banking Solutions is an advanced, cloud-based core and digital banking solution designed to give community-based financial institutions a competitive edge in the rapidly evolving landscape. Launched in the U.S. in February 2023, the platform boasts a robust cloud core processor that can streamline workflows and scale with the businesses as they grows, Black Dragon said.
PayOnward is an AI-driven digital payment platform built for credit unions and community-based financial institutions. Its comprehensive, white-label suite—including accounts receivable, bill pay, peer-to-peer transfers, account-to-account payments, cross-border payments, and earned wage access—helps credit unions modernize services, keep deposits, and engage small businesses and members, according to BlackDragon.
Put the Band Back Together’
The company was created by Louis Hernandez, Jr., who is founder, chair and CEO of Black Dragon Capital and the former chair and CEO of Open Solutions, which created the DNA Core System. He was also the Founder of the payments solution Payveris.
“When we sold Open Solutions, I never imagined creating another modern core system. Still, years passed, and I couldn’t stand by and watch multiple failed attempts at this new modern core system set an industry I care about back — failing our institutions and the members they serve,” said Hernandez. “We put the band back together with Rashid Desai, former CTO of Open Solutions when we launched DNA; Joe Lockwood, who was most recently the president of COCC, the largest deployer of DNA and is now CEO of Open Banking Solutions; and others, to create the next generation core system from experts who know how to create a core system that works and addresses industry issues. This time, it will be owned by credit unions for credit unions.”
As the CUDaily also recently reported, the company has recently put together a FinTech Limited Partners Advisory Board that also includes 10 credit union members.
