Modak, a financial application designed for families to educate children and teenagers on financial literacy, has announced a new partnership with Legend Bank, N.
A., a community bank based in Texas, which will serve as Modak’s regulated sponsor bank.
As of June 2025, Legend Bank officially provides the banking infrastructure for Modak’s parent accounts and youth debit card program. This collaboration is presented as a significant step for Modak’s operational stability and growth, reinforcing its commitment to secure and reliable financial tools for families across the nation.
Madhu Yalamarthi, CEO and Co-Founder of Modak, emphasized the importance of trust in building financial tools for the next generation. Yalamarthi stated that the decision to work directly with a sponsor bank stemmed from a shared commitment to transparency, security, and real-time accuracy. He highlighted that this partnership enables Modak to reconcile every user ledger daily, enhancing operational clarity for its users.
Julie Valencia, Head of Operations and Compliance at Modak, added that Legend Bank’s community banking model and compliance focus align with Modak’s vision for modern, responsible youth banking. The technical integration with Legend Bank facilitates a tightly coupled ledgering system, ensuring user balances are updated and reconciled daily. This architecture is designed to provide transparent accounting of funds.
Jared Robinson, Senior Vice President, Director of Fintech at Legend Bank, expressed pride in partnering with Modak, noting that the collaboration provides the necessary bank-level stability for Modak to scale its impact. Santana Gilreath, Senior Vice President, Sr. Risk Management, Compliance & CRA Officer at Legend Bank, echoed this sentiment, stating that Modak’s mission to help the next generation manage money and elevate communities aligns well with Legend Bank’s community-focused approach.
Following the migration to Legend Bank, Modak has relaunched key features for families, including its allowances tool, automatic transfers, and in-app savings goals. Modak’s platform aims to empower youth to build financial confidence through tools like automated allowances, spend tracking, savings goals, and real-time parent oversight, all within a family-focused banking experience.
Modak was co-founded by Madhu Yalamarthi and has secured $19 million USD in funding from investors including Notable Capital, Nazca, and Monashees. Legend Bank, N.
A., established over 134 years ago, operates 14 locations across North Texas and holds over $1.1 billion in total assets. The bank also supports fintech companies through its embedded banking solutions.
