Federal News
Fuse Raises Funding to Modernize US Credit Union Loan Systems
March 16, 2026
Fuse, an AI-native loan origination system (LOS) startup, has secured $25 million in Series A funding to modernize outdated loan processing software used by over 4,000 U.S. credit unions. The company is also offering a $5 million "rescue fund" to assist credit unions in transitioning away from costly legacy systems, aiming to reduce operational expenses and improve loan processing efficiency. This development signals a growing opportunity for procurement professionals and contractors involved in financial technology modernization within federally regulated credit unions.
- The National Credit Union Administration (NCUA) oversees the regulatory environment affecting these credit unions, making this modernization relevant to federally insured institutions.
- Procurement teams should evaluate emerging AI-driven LOS solutions like Fuse's platform as potential replacements for legacy systems that are expensive and operationally inefficient.
- The availability of dedicated transition funding lowers financial barriers for credit unions to adopt new technology, potentially accelerating procurement cycles and contract awards.
- Vendors specializing in AI, loan processing, and credit union technology should consider positioning offerings to align with this modernization trend and the needs of federally regulated credit unions.
Itβs not just a marketing gimmick. Because legacy software costs are high, many credit unions cannot afford to break their current contracts to switch providers.
— Andres Klaric, Co-founder of Fuse
Agencies
National Credit Union Administration
Vendors
Fuse