PenFed Credit Union Partners with InvestiFi to Bring Embedded Investing to Members

WHY THIS MATTERS
This partnership reflects a growing shift toward embedded finance, where banking and investing are converging into a single, unified user experience. Traditionally, customers have had to move funds out of their primary bank accounts and into third-party platforms to invest, creating friction and weakening the relationship between financial institutions and their customers.

By embedding investing directly into its digital banking platform, PenFed removes that friction. Members can fund investments from their existing accounts and view everything in one place, making investing more accessible and integrated into everyday financial behaviour. This is particularly important as more consumers expect seamless, app-based financial services rather than fragmented tools.

There is also a strategic balance sheet angle. Keeping investment activity on-platform helps reduce deposit outflows, which have become a growing concern for banks and credit unions in a higher interest rate environment. Retaining those funds while increasing engagement strengthens both customer relationships and financial stability.

PenFed Credit Union, one of the nation’s largest credit unions, has partnered with InvestiFi, a leading provider of digital investment solutions for financial institutions. This partnership brings embedded investing capabilities to nearly 2.8 million members directly through PenFed’s mobile and online banking platforms. 

Key benefits to PenFed members include: 

• Robust Resources – self-directed securities investing, a Guided Investing robo-advisory service, and comprehensive financial education resources.

• Seamless Experience – funding investments directly from existing checking accounts and viewing balances within digital banking, eliminating the need for external logins or fragmented workflows. 

By keeping investing on-platform, PenFed can reduce deposit outflows, increase engagement, and continue to deepen the member relationship as a trusted partner. 

“Our members have come to expect world-class service and that includes the ability to bank and invest on the same platform,” said PenFed EVP Member Operations and Global Fixed Assets Jamie Gayton. 

“By partnering with InvestiFi we are able to deliver a seamless experience allowing members to invest out of the same checking accounts they use for their everyday spending needs. PenFed is committed to delivering innovative, member-focused solutions that make investing approachable and accessible, as part of our mission to help members achieve their financial dreams.” 

“We see users on 3rd party investment platforms demonstrating the behavior to sacrifice yield on their cash deposits, for the convenience of Investing from Checking,” said Kian Sarreshteh, CEO of InvestiFi. 

“This partnership will help members feel confident, inspired, and empowered as they engage with their finances. Investing can be intimidating, but together with PenFed, we’re creating experiences that make exploring financial opportunities approachable, seamless, and meaningful.” 

This collaboration sets a new benchmark for credit unions by providing seamless, empowering experiences that align with changing member expectations. This joint effort not only delivers significant value to PenFed’s members but also drives InvestiFi’s vision of inclusive and accessible financial innovation forward.

FF NEWS TAKE
This is part of a broader trend where financial institutions are fighting to remain the primary interface for their customers’ financial lives. If users invest elsewhere, banks lose visibility, engagement, and ultimately control over the relationship.

PenFed is taking a proactive approach by bringing investing in-house through partnership rather than building from scratch. That is often the fastest and most effective route, especially as fintech providers like InvestiFi specialise in these capabilities.

The real opportunity lies in behaviour change. When investing sits next to everyday banking, it becomes more habitual and less intimidating. That can drive higher participation, particularly among users who might not otherwise engage with investment platforms.

The challenge will be differentiation. As more institutions move toward embedded investing, the experience, education, and ease of use will determine who stands out.

Overall, this move reinforces a clear direction. Banking platforms are evolving into full financial hubs, and those that successfully integrate services like investing will be better positioned to retain customers and grow long-term value.