Investment follows the announcement of the St. Louis-based fintech's partnership with Coastal Community Bank
ST. LOUIS, MO / ACCESSWIRE / January 22, 2020 / Neocova, a banking technology platform built specifically for community financial institutions, announced today that it has secured over $9.5 million in Series A funding. The round includes investments from community financial institutions such as Bank of St. Elizabeth, Coastal Community Bank, First Financial, Kearny Bank, Provident Bancorp, Inc. and Sunwest Bank. Hovde Group served as Neocova's placement agent.
"This raise is both a statement of intent by the community banks of the United States that their technology status quo is unacceptable, as well as a tremendous vote of confidence in Neocova from the same community," said Neocova CEO and Co-Founder Sultan Meghji. "We haven't just created the most advanced banking technology platform - we've created a mission with our community financial institution and regulator partners to transform an industry that's been dominated by a handful of existing players. Affordable and adaptive core technology with unmatched cybersecurity equates to a more secure, stronger financial infrastructure for local economies throughout the U.S."
Neocova will use the new funding to expand its product and technology teams who focus on AI-driven analysis of the transactional data that banks process to enhance business-focused decision making.
"We're putting our money where our mouth is to help banks be more successful in serving their customers," added Brice Luetkemeyer, President and CEO of the Bank of St. Elizabeth in Missouri. "We invested in Neocova because their cloud-native, API-backed technology delivers much needed flexibility and efficiencies that banks are not getting today. Also, Neocova has a deep commitment to cybersecurity that puts customer safety and compliance at the forefront."
In addition to its Series A round, Neocova recently announced a partnership with Coastal Community Bank (Nasdaq: CCB) ("Coastal") to develop and implement a best-in-class reporting and monitoring platform that will guide the bank's compliance across critical areas. The data warehouse solution will hold all required partner data securely, giving Coastal enhanced oversight and transparency through a single, unified reporting platform.
"For decades manual banking operations have dominated the time and budgets of community banks. These resources could have instead been dedicated to serving community bank customers," said Stephen Glassgold, Managing Director at Piper Sandler and member of Neocova's Board of Directors. "Alternative cloud-native core solutions like Neocova are delivering the change this industry desperately needs, as witnessed by investment from community banks, like Coastal, Neocova's end-users."
Neocova has recently expanded its team with industry veterans like Lee Keith, President of Banking Services, Dennis Hild, Managing Director of Regulatory Affairs, Peter Longo, SVP of Partnerships and Bob O'Connor, Chief Information Security Officer, among many others. Neocova is currently hiring for positions in its New York City office and at its St. Louis headquarters and is proud to be a part of supporting job creation and economic opportunity in the Midwest.
To learn more, visit neocova.com.
About Neocova
Neocova is the first AI-based, API-driven banking technology platform designed specifically to support community banks and credit unions. Entirely cloud-based, Neocova's core platform manages customers, their deposit accounts and loan products with ease. Most importantly, Neocova's low-cost technology offers unmatched cybersecurity to keep financial institutions - and their customers - safe. Visit neocova.com for more information, or follow Neocova on LinkedIn and Twitter.
About Coastal Community Bank
Coastal Financial Corporation (Nasdaq:CCB) (the "Company") is an Everett, Washington based bank holding company with Coastal, a full-service commercial bank, as its sole wholly-owned banking subsidiary. A $1 billion community bank, Coastal provides service through 14 branches in Snohomish, Island, and King Counties, the Internet, and its mobile banking application. Coastal provides select partners with BaaS through its CCBX Division. To learn more about Coastal visit www.coastalbank.com.
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Austin Downey
Caliber Corporate Advisers
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SOURCE: Caliber Corporate Advisers