CINCINNATI–CU NextGen, a CUSO that provides digital banking solutions, said it has acquired another CUSO, Constellation Digital Partners, which also provides a digital banking platform and which was formed in 2017 by Coastal Credit Union and eight other partners.
The formation of Constellation Digital Partners was led by founder Kris Kovacs, who was CIO with Coastal CU in North Carolina. The company was successful in filing of a patent for its platform concept and it raised a then record $32.5 million in funding. By 2020, it had 100 development partners, and by 2021 Coastal CU became the first CU to begin operating on its platform.
“This strategic acquisition brings together two organizations deeply rooted in the credit union movement, with a shared commitment to customizability, collaboration, and long-term success for credit unions of all sizes,” CU NextGen said in a statement. “With this acquisition, CU NextGen now supports more than 90 credit unions nationwide, helping them design, customize, and evolve digital experiences that reflect their unique members, markets, and strategies.”
Terms of the acquisition were not released.
Continuity of Service
CU NexGen said that for Constellation Digital Partners’ participating credit unions, the acquisition ensures continuity of service, ongoing platform support, and accelerated innovation. CU NextGen will assume responsibility for the Constellation digital banking platform and its participating credit unions, providing enhanced operational support and access to CU NextGen’s broader ecosystem of solutions and services.
“Constellation was built by credit unions, for credit unions, and that philosophy aligns perfectly with CU NextGen,” CU NextGen CEO Kent Zimmer said in a statement. “By bringing Constellation into the CU NextGen family, we’re ensuring participating credit unions have a stable, forward-looking partner that will continue to invest in the platform, listen to their needs, and evolve the digital experience without disruption.”
CU NextGen added in its statement that it believes that a CU’s members aren’t generic, a digital banking shouldn’t be either.
The Nextly Platform
CU NextGen said its digital banking platform, Nextly, is built on a highly customizable, no-code foundation that allows credit unions to tailor their digital experience without long development cycles or vendor lock-in.
It said participating Constellation credit unions will benefit from CU NextGen’s proven approach to rolled conversions, minimal disruption, and collaborative planning, ensuring a smooth transition and clear path forward.
“We are excited to now be part of Nextly and to continue to expand our online and mobile banking experience for our members. CU NextGen has been an important partner with Meritrust Credit Union, and we look forward to developing even more innovative solutions together,” Meritrust CEO James Nastars said in a statement.
