CUNA Mutual Group bolsters auto fintech capabilities with two acquisitions
CUNA Mutual Group ventured deeper into the automotive and fintech worlds this week by acquiring one of this year’s Emerging 8 honorees.
The mutual insurance holding company acquired ForeverCar, the Chicago-based start-up company that protects vehicle owners from expensive repairs with mechanical repair coverage (MRC) policies delivered through online channels.
CUNA Mutual Group’s move involving ForeverCar arrived on the heels of acquiring digital lending platform CuneXus on Oct. 15.
Terms of both transactions were not disclosed, according to news releases.
Executives recapped that CMFG Ventures, the venture capital entity of CUNA Mutual Group, was an early-stage investor in ForeverCar in October 2016.
Combined with the acquisition of CuneXus, executives highlighted that adding ForeverCar’s digital platform and marketing capabilities further enhances CUNA Mutual Group’s lending and insurance product portfolio and its ability to reach and protect more consumers digitally.
“Our investments in start-ups such as ForeverCar and CuneXus, coupled with our focus on modernizing and digitizing our product portfolio, are essential efforts in responding to a rapidly evolving consumer experience,” CUNA Mutual Group president and chief executive officer Robert Trunzo said.
“We’ve been committed to helping people achieve financial security for more than 85 years, and lending insurance products, including MRC, have been an essential pillar of how we protect consumers and help them achieve a brighter financial future,” Trunzo continued.
The company also noted MRC is a core offering in CUNA Mutual Group’s lending solutions and payment protection products portfolio. The firm said it will continue to sell its MRC policies through the ForeverCar platform.
ForeverCar currently contracts with 180 credit unions as their official MRC provider.
“Maintaining those credit union — and member — relationships will be the top priority during the integration process,” CUNA Mutual Group said while adding the acquisition of ForeverCar expands direct-to-consumer channels and provides new growth opportunities.
CUNA Mutual Group also mentioned ForeverCar’s current customers will be fully supported, and the company will continue to operate in its Chicago location.
Meanwhile, CUNA Mutual Group pointed out that it was an early-stage investor in CuneXus, too, pushing funds into the Santa Rosa, Calif.-based start-up firm in January 2017. The financial aid helped CuneXus become an award-winning provider to financial institutions with its all-in-one digital lending platform that offers consumers a quick, easy and personalized online and mobile lending experience.
“We are continuing our journey into a more diverse, digital-first world,” Trunzo said when the CuneXus acquisition was made public.
“Our company is committed to using technology to enhance consumers’ access to financial solutions that work for them and create a more equitable financial system and society. This is a top priority for all of our core businesses,” Trunzo continued.
“CuneXus is on a strong growth trajectory, and adding their expertise and product solution to our company portfolio allows us to maximize its growth potential and enhance our long-standing efforts to make a brighter financial future accessible to everyone,” he went on to say.
The company highlighted that CuneXus is geared to provides a seamless lending experience across every touchpoint, from targeted email and postal mail loan offers, through online and mobile banking access, to branch and call center customer support. Its digital platform can enable financial institutions to offer pre-approved, “click-to-accept” consumer loans to customers where and when they need them.
CUNA Mutual Group went on to mention CuneXus’ platform uses a combination of a bank’s or credit union’s customer information and lending criteria, as well as customer credit history, behavior and location to identify the best potential loan offers for consumers — with no application necessary.
“We are genuinely excited to join the CUNA Mutual Group family,” CuneXus CEO Dave Buerger said. “Our capabilities and culture align very well, and we believe we can greatly enhance CUNA Mutual Group’s digital evolution in the lending space.”
Founded in 2008, CuneXus currently works with more than 140 financial institutions. It was named as a start-up to watch on KPMG’s global rundown of The 50 Best Fintech Innovators.
It also was the winner of the Best Consumer Lending Company in the 2020 Fintech Breakthrough Awards, the winner of the Callahan & Associates 2019 Innovation in Lending Award as well as the Top Emerging Technology Company at the 2019 LendIt Fintech Industry Awards.
Executives added that CuneXus’ current customers will be fully supported, and the company will continue to operate in its Santa Rosa location.