Fuse Launches $5M Rescue Fund to Liberate Credit Unions from Legacy Software Contracts

New York-based fintech Fuse has announced a $5 million Rescue Fund to assist credit unions in breaking free from restrictive legacy technology contracts. The initiative provides 50 qualifying institutions with free access to the Fuse AI-native platform until their existing vendor agreements expire. This strategic move aims to bridge the widening gap between member expectations and the outdated capabilities of traditional software providers.

The company is backed by $25 million from prominent investors associated with Chime and OpenAI. This substantial funding allows Fuse to challenge established giants by absorbing the costs of vendor transitions. By removing the financial penalty of double-paying for software, Fuse enables credit unions to modernize their infrastructure without immediate budget strain.

Fuse introduces a transparent pricing structure that replaces the industry standard of hidden costs and variable transaction fees. Once the rescue period ends, institutions transition to a flat annual subscription of $100,000, or $50,000 for smaller community organizations. This model is designed to realign vendor incentives, focusing on automation success rather than charging for every configuration change.

The platform utilizes a Generative AI Lending Copilot that monitors workflows in real time to recommend efficiency improvements. Unlike legacy systems burdened by technical debt, Fuse releases software updates weekly to ensure clients stay competitive with fintech lenders. This proactive approach helps institutions achieve significantly higher automation rates within their first year of operation.

More than 100 financial institutions already utilize Fuse to manage loan originations and account openings. Notable partners range from Navigant Credit Union to Canopy Credit Union, demonstrating the platform's scalability across different asset sizes. A recent reseller agreement with FIS Global further validates the technology's impact on the broader banking ecosystem.

Qualified credit unions are encouraged to apply for the fund at fusefinance.com/rescue while spots remain available. The offer is strictly limited to the first 50 participants on a first-come, first-served basis. By eliminating the high cost of switching, Fuse hopes to become the defining infrastructure partner for the next generation of credit unions.