WAYZATA, Minn. — Credit unions have made new investments in two separate CUSOs.
In Minnesota, three credit unions — Gulf Winds, Great Lakes and Dort Financial — have invested in Nook through a funding round the credit union service organization said will support further development of its data integration and member engagement technology.
Nook announced Oct. 7 that the round was fully subscribed. The company did not disclose the amount raised or the size of the individual investments.
Gulf Winds is the newest of the three credit union investors, according to Nook, which connects information from credit union systems and helps staff use that data through HubSpot to coordinate member engagement.
Addressing a ‘Challenge’
The company said its technology addresses a challenge for credit unions: Member information often resides in disconnected systems, making it harder to deliver timely, relevant communications. Credit union ownership gives participating institutions a stake in developing those capabilities, Nook said.
“Credit unions should have a voice in the infrastructure that will support their relationships with members for years to come,” said Austin Wentzlaff, Nook’s co-founder and CEO. “Gulf Winds, Great Lakes, and Dort Financial each recognized the opportunity in what Nook is building. Their investment reflects confidence in our team, the technology we’re building and a shared belief that credit unions can shape stronger capabilities for the industry.”
Expanding Data Connections
Nook reported 200% client growth over the past year as it expanded its data integration capabilities and connected additional credit union systems to HubSpot.
The company said it completed HubSpot integrations across four core systems:
- Symitar Episys.
- Corelation Keystone.
- Fiserv XP2.
- Fiserv Portico.
Several additional integrations are in development, including Fiserv DNA, according to Nook.
Beyond core systems, the company said it has built integrations with Velera, Candescent, Enrich, SavvyMoney and three predictive analytics providers it did not identify.
Those connections allow information from multiple sources to be consolidated into a single contact record, giving credit unions a more complete view of individual members, Nook said. The company said the data can support personalized communications, more precise targeting and other engagement efforts through HubSpot.
Gulf Winds Joins Investors
Daniel Souers, president and CEO of Gulf Winds, said the credit union’s investment reflected its interest in making member data more useful to employees serving members.
“Credit unions can deliver more personal, relevant experiences when they have access to the right data,” Souers said. “I’ve seen Nook’s technology firsthand. We chose to invest in them because we believe in how they build data foundations needed to help marketers put ideas into action and strengthen member relationships.”
Another Funding Round Planned
Nook said proceeds from the completed round will support continued development of its integrations, HubSpot capabilities and credit union services. The broader ownership group also brings additional industry experience to that work, the company said.
Investor interest exceeded the round’s original allocation, according to Nook, which said it plans to move quickly toward another funding round. It did not announce a timetable or funding target.
Nook is a data infrastructure CUSO whose offerings include the Nook Data Connector. The company also holds Platinum HubSpot Solutions Partner status.
NOFFCU Invests in Duome
Separately, New Orleans Firemen’s FCU has invested in Minneapolis-based Duome, a CUSO that is seeking to address home affordability through co-ownership. The investment marks the first step in a partnership to bring Duome’s co-ownership model to Louisiana, helping working families achieve homeownership in markets where prices have outpaced incomes, the company said.
“Our credit union was founded in 1934 by firefighters who refused to let working families be shut out of the financial system, and that mission still drives us,” Judy DeLucca, president of New Orleans Firemen’s FCU, said in a statement.. “Too many of the first responders, educators, and neighbors we serve are being priced out of homeownership. Investing in Duome is a step toward opening a door that has been closing for the very people who keep our communities safe, and we’re proud to take it.”
How Model Works
Duome’s model works by co-investing directly alongside qualified buyers. This reduces the mortgage a household needs to a size its income comfortably supports, so the buyer can own and live in the home and build equity from day one. Duome is structured as a Credit Union Service Organization (CUSO) and partners with credit unions to bring the model to their members.
“New Orleans Firemen’s Federal didn’t just see what Duome is; they saw what it could mean for their members,” said Miriam Ackerman, co-Founder of Duome. “Ninety years of serving working families will do that. That’s not a coincidence. That’s confirmation, and we’re proud to be building with them.”
Duome continues to engage credit union leaders who are ready to bring a new path to homeownership to the members
About the CUSO
Duome described itself as a co-investment homeownership company that helps mortgage-ready households buy homes in markets where prices have outpaced incomes.
