OneAZ Credit Union to back fintechs as limited partner in VC fund
OneAZ Credit Union is now among a growing collective of credit unions investing in fintechs and emerging banking technologies.
OneAZ recently announced it became a limited partner in Curql Fund II, which is operated by the Curql Collective, a group of credit unions and industry partners. Iowa-based venture capital firm Next Level Ventures manages the collective’s investments in portfolio companies.
“Joining Curql Fund II is a transformative step for OneAZ, enabling us to engage with trailblazing technology that has the potential to revolutionize the credit union industry,” Brandon Michaels, OneAZ’s president and CEO, said in a statement. “We are thrilled at the opportunity to have a seat at the table to review and potentially invest in advanced technology that could place us at the vanguard of innovation. By partnering with Curql, we’re committing to embracing innovative solutions that allow us to fulfill our mission of driving prosperity for all Arizonans.”
OneAZ declined to disclose its investment amount in Curql’s Fund II. A regulatory filing for Curql Fund II, however, shows the $500 million fund requires a minimum investment of $2 million from its limited partners.
“This fund represents a significant opportunity for us to not only diversify our portfolio but also to embrace innovative technologies that can propel our services to new heights,” Osman Ulhaq, OneAZ’s chief strategy and growth officer, said in a statement. “Our commitment to driving prosperity and community growth through innovative solutions remains stronger than ever.”
New fund launched after success of first one
The Curql Collective launched Fund II in September 2023, building upon the success of its first fund, which totaled more than $252 million and was fully subscribed with investments in 28 portfolio companies, according to the collective’s website.
Curql Collective in April announced it generated $100 million in investment commitments for Curql Fund II from 24 limited partners, including Desert Financial Credit Union and Vantage West Credit Union. In July, Curql’s Fund II made its first investment in ModernFi, a New York-based fintech that enables credit unions to manage deposits and provide extended deposit insurance to attract high-net worth customers.
The Curql Collective also operates Curql Accelerate, which launched in February with an inaugural cohort of eight companies that received mentorship, programming and a $100,000 investment.
“By connecting us with companies delivering new approaches to our standard processes, Curql is creating a space for OneAZ to form collaborative relationships and attain innovative solutions,” Ulhaq told the Business Journal. “These partnerships may lead to investments in new technologies that will drive us forward as an industry leader in digital transformation.”
The credit union plans to explore additional opportunities that introduce innovative solutions to its members and community, meaning it will be looking for partners on an “ongoing basis,” Ulhaq said.
“Ultimately, OneAZ aims to offer our members the best experience possible,” he said. “By advancing OneAZ’s digital journey with fintech, we look forward to the opportunity to both maximize our potential as a leading financial institution in Arizona and drive prosperity for our members.”
OneAZ’s investment in Curql’s Fund II comes on the heels of the credit union’s plans to explore the potential for blockchain technology in the financial industry. The credit union in June joined San Francisco-based Metallicus’ Banking Innovation Program by Metal Blockchain.
The program is designed to support financial institutions’ journeys into blockchain technology at no cost. It enables financial institutions to navigate and adopt customized blockchain solutions, ensuring compliance with regulatory standards while addressing their distinct operational demands.
OneAZ Credit Union serves more than 185,000 members and operates 20 branch locations in Arizona. According to Business Journal research, OneAZ Credit Union is the third-largest credit union in the state, ranked by total assets.