Dive Brief:

• Michigan State University’s credit union has acquired fintech Tandem, a couples-focused finance app, the companies said Wednesday. 
• Ann Arbor, Michigan-based Tandem was purchased by Reseda Group, a credit union service organization of MSU Federal Credit Union, based in East Lansing. Terms of the deal weren’t disclosed.
• Reseda Group was among Tandem's first investors and said it purchased the company to bring its app and user base under the credit union’s umbrella. The acquisition furthers the credit union’s goal of creating “an end-to-end family banking ecosystem,” enabling customers to manage individual accounts, joint accounts and dependent accounts for children and aging parents, according to a press release. 

Dive Insight:

Credit unions’ aging membership has underscored the need for those financial institutions to update and modernize their offerings to appeal to and increase membership with younger generations. 

Tandem bills itself as “the essential app for living together,” pitching its services to couples looking for a solution to split expenses, track and plan spending and “coordinate their day-to-days.” 

The credit union had the opportunity to make the acquisition “in lieu of a funding round,” Ben Maxim, MSUFCU’s chief technology officer, told American Banker. As of this year, MSUFCU has about 367,000 members and $8.26 billion in assets, according to its website. 

“Tandem has been a valuable part of the Reseda Group Ecosystem for several years, providing Gen Z and Millennial couples with a breakthrough digital solution for navigating their first money milestones and ultimately building their financial futures,” April Clobes, CEO of Reseda Group and MSUFCU, said in the release. “With Tandem now a part of our portfolio of products, we are taking our partnership of innovation to the next level, making the digital banking experience for members and consumers more collaborative, transparent, and family-focused.” 

Tandem, which launched in 2023 and employs a subscription model, has about 10 employees, according to its LinkedIn page. The company had about 25,000 couples using its platform as of last year, American Banker reported. Bigger competitors include couples-focused app Honeydue and broader budgeting apps Monarch and You Need a Budget. 

Tandem’s website says it uses Humble, Texas-based Third Coast Bank as its banking service provider for a high-yield savings account, but the fintech wound down that partnership due to “volatility” in the banking-as-a-service space and will relaunch the product with accounts backed by MSUFCU, Tandem co-founder Dan Couvreur told American Banker.    

As part of the acquisition, Couvreur and co-founder Michelle Winterfield will become vice presidents at Reseda Group.  

“Reseda Group accelerates our ability to offer more tailored financial products to our households,” Couvreur said in the release. “We've always envisioned a financial experience that grows with you, and now we have the partner to make that vision a reality for millions.”

Late last month, Reseda Group said it partnered with Salem, Oregon-based Maps Credit Union to acquire fintech Pocketnest, a financial wellness platform targeting millennials and Gen Xers. Terms of that deal were also not disclosed. 

MSUFCU and Reseda Group didn’t immediately respond to questions related to the Tandem acquisition.