AccountNow Secures Funding from the New CFSI Catalyst Fund

By: Finance News

AccountNow, Inc., a leading marketer of MasterCard® and Visa® branded prepaid cards for the estimated 40 million strong underbanked consumer market, today announced that the Center for Financial Services Innovation’s new Catalyst Fund is the final investor in the companies third round of venture funding announced in June. The Center for Financial Services Innovation (CFSI) created the CFSI Catalyst Fund to invest in financial services companies and solutions focused exclusively on underbanked consumers. The fund is a private equity limited partnership and was announced on July 24.

“The CFSI Catalyst Fund seeks dynamic, well-managed, early growth stage companies which will deliver both effective products and services for underbanked consumers and a robust return on the Center’s investment,” commented Arjan Schutte, CFSI’s Associate Director, who manages the fund.

“AccountNow is an excellent example of how companies can serve this market profitably for both company and consumer, and we are pleased it is our first completed investment in the new fund. CFSI believes prepaid products have enormous potential for the underbanked market. As with other banking services and strategies, we support innovative companies not only through investment, but with our roundtables, networking opportunities, events, research and other programs."

“Investment by the CFSI Catalyst Fund and creation of the fund itself are just the latest proofpoints that AccountNow is tapping into a highly attractive and underserved market,” said Tim Coltrell, CEO of AccountNow. “CFSI’s funding will assist us as we introduce new services to the market.”

On June 26, AccountNow announced $12.75 million in new funding and the addition of two new board members. Trident Capital, a new investor, led the round, and all current investors participated. These investors include INVESCO Private Capital, Oak Hill Venture Partners, VSP Capital, Grayhawk Venture Partners and Mr. Coltrell. Christopher P. (Woody) Marshall, Managing Director of Trident Capital and Stephen B. Galasso, Strategic Advisor at Trident Capital, were AccountNow’s new board members.

AccountNow also named David J. Petrini, formerly Executive Vice President and Chief Financial Officer of GreenPoint Mortgage Funding, Inc., owned by Capital One as its new Chief Financial Officer. Prior to joining GreenPoint, Mr. Petrini served 16 years with Providian Financial Group, ultimately serving as Vice Chairman, managing corporate finance, financial planning and analysis, treasury, accounting, investor relations, as well as facilities and real estate. He began his career at Ernst & Whinney, now Ernst & Young.

“Dave Petrini brings a wealth of market knowledge serving the underbanked and a long, successful track record,” added Mr. Coltrell. “His talent will be instrumental in fueling AccountNow’s continued growth.”

“AccountNow’s product offerings give underbanked consumers the means to benefit from all essential banking services, such as direct deposit, bill paying services and branded prepaid cards, and effectively replace the traditional checking account,” Mr. Petrini said. “I look forward to working with AccountNow as we branch out into offering these consumers other critical financial services.”

About CFSI

The Center for Financial Services Innovation, a non-profit affiliate of ShoreBank Corporation, facilitates financial services industry efforts to serve underbanked consumers across the economic, geographic and cultural spectrum. It provides funding and resources, enables partnerships, and identifies, develops and distributes authoritative information on how to respond to the needs of the underbanked profitably and responsibly. CFSI works with banks, credit unions, technology vendors, alternative service providers, consumer advocates and policy makers to forge pioneering relationships, products and strategies that will transform industry practice and the lives of underbanked consumers. For more information on CFSI, go to www.cfsinnovation.com.

About AccountNow, Inc.

AccountNow, headquartered in San Ramon, California, is a leading provider of financial solutions for the 40 million US consumers who do not have established credit or traditional banking relationships. AccountNow’s money saving offers give consumers an alternative to traditional checking accounts by providing access to financial products and payment systems, including MasterCard and Visa prepaid cards, Pay Anyone Bill Payment, and FDIC-insured deposits. AccountNow’s prepaid MasterCard cards are issued by MetaBank (NASDAQ NM: CASH) and AccountNow’s Prepaid Visa Cards are issued by Palm Desert National Bank. Visit AccountNow online at www.accountnow.net or www.accountnowvisa.com. For investor relations, call Julie Davis 925.498.1827 or jdavis@accountnow.net.

About Meta Payment Systems

Meta Payment Systems, a division of MetaBank, offers card issuing and program support to banks, processors, and third-party distributors seeking to develop, market and manage stored-value cards. Meta Financial Group, Inc. (NASDAQ NM: CASH) is the holding company for MetaBank. For more information, call 605.782.1712, or visit http://www.metacash.com.

About Palm Desert National Bank

Palm Desert National Bank is a wholly owned subsidiary of Palm Desert Investments. An active corporate citizen in its community, PDNB has been serving the Coachella Valley for over 25 years, with branch offices in La Quinta, Palm Desert, and Rancho Mirage. PDNB is a nationally chartered financial institution with assets exceeding $400 million, and is home to Electronic Banking Solutions, an acknowledged industry leader that provides a variety of electronic banking solutions including vault cash, and cash management to off premise ATMs and self service kiosks, merchant point of sale sponsorship, and stored value prepaid card programs throughout the nation.