- A subsidiary of TAPP Engine, 9Squid Private Markets has introduced its AI-powered private markets platform for credit unions and community financial institutions (CFIs).
- 9Squid will enable credit unions and CFIs to launch securitization initiatives thanks to modern asset-liability management (ALM) and liquidity management tools.
- TAPP Engine, headquartered in Quincy, Massachusetts, made its Finovate debut at FinovateSpring 2025 in San Diego.
9Squid Private Markets, a subsidiary of TAPP Engine, has unveiled its AI-powered private markets platform for credit unions and community financial institutions. The platform enables credit unions and CFIs to access modern asset-liability management (ALM) and liquidity management tools, making securitization a systematic, repeatable balance sheet strategy rather than a complex, one-off transaction.
“Community institutions play a central role in capital formation, yet many have been priced out of securitization markets,” Tapp Engine Founder and CEO Tosin Osunsanya said. “9Squid brings securitization, balance sheet modeling, and an AI-powered platform built for credit unions and community financial institutions of all sizes. It provides a repeatable and efficient path to institutional capital while preserving cooperative governance and relationship banking.”
Credit unions in the US hold approximately $2.4 trillion in assets—and more than $1.7 trillion in consumer loans. CFIs, specifically community and regional banks, hold another $6 trillion in assets and more than $4.1 trillion in consumer, small business, and commercial loans. This data is from the National Credit Union Administration (NCUA) and the Independent Community Bankers of America (ICBA), respectively. Despite these sizable holdings, the rate of securitization among credit unions and community banks is lower than it could be.
Securitization would enable credit unions and CFIs to convert their loan assets into marketable securities that could be sold to institutional investors. Backed by the cash flows generated from underlying loans, securitization provides credit unions and CFIs with greater liquidity, balance sheet optimization, and risk diversification.
Unfortunately, securitization often brings costs, structural complexity, and minimum size thresholds that have made it difficult for credit unions and CFIs to participate and access institutional private markets. 9Squid helps lower these barriers, enabling efficient access to institutional capital. The platform uses balance sheet impact simulation and optimization to enable institutions to evaluate securitization scenarios before execution. This allows institutions to understand projected impacts on liquidity, capital ratios, earnings, and concentration exposure. The platform helps ensure disciplined decision-making, making securitization an ongoing balance sheet management tool rather than a singular transaction.
This point was underscored in a statement by TDECU Holdings President Michael Massey, who noted that “what stood out was the ability to understand balance sheet outcomes before committing to a transaction. That level of visibility allows credit unions to evaluate securitization as a practical and repeatable balance sheet strategy.”
9Squid currently supports securitization of personal loans, auto loans, and home equity lines of credit using regulator-aligned structures. With regard to the current partnership, five credit unions are in the initial pipeline, and plans are in effect to onboard additional credit unions and CFIs of all sizes.
Based in Quincy, Massachusetts, Tapp Engine made its Finovate debut at FinovateSpring 2025 in San Diego, California. Founded in 2021, the company partners with credit unions and CFIs to increase financial wellness, enhance loyalty, attract new users, and boost revenue and deposit retention. At the FinovateSpring last year, Tapp Engine demonstrated how its platform blends intuitive design, educational resources, and an emphasis on accessibility to deliver self-directed, automated investing experiences to accountholders—all from within their digital banking environment.
Are you a credit union or community bank looking for ways to enhance the customer experience, attract new members, and grow deposits? FinovateSpring 2026—May 5 through May 7—will feature a range of special sessions dedicated specifically to the issues of credit unions and community financial institutions. Check out the FinovateSpring agenda to learn more!
Photo by Sasun Bughdaryan on Unsplash
Views: 203
