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Marstone Announces $8M Series B to Drive New Fee-Based Revenue for Financial Institutions via Digital Investment and Planning Offering

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Marstone, Inc. has raised an $8M Series B financing round led by Mendon Venture Partners and South Rose Capital, alongside new investors including the Castle Creek Launchpad Fund. The round also includes existing investor Equity Bank (NYSE: EQBK). Marstone enables financial institutions to retain and generate deposits, increase non-interest income, and improve client servicing and satisfaction. The platform has been adopted by Woodforest National Bank, Equity Bank, and Red River Credit Union to deliver a modern user interface, paperless account opening, flexible goal planning, performance reporting, data aggregation, portfolio trading and rebalancing, asset allocation, risk assessment, and more. The company aims to help banks protect margins and deposits by offering digital investing and wealth planning solutions to meet customer needs via digital channels.
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Marstone's recent Series B financing round is a significant milestone for the company and it reflects broader industry trends where financial institutions are increasingly integrating digital wealth management solutions. The $8M raised demonstrates investor confidence in Marstone's business model and its potential to address the pressing needs of banks and credit unions. By facilitating a more cost-effective alternative to traditional full-time hires, Marstone's platform offers a compelling value proposition for financial institutions looking to expand their wealth management services.

For banks and credit unions, the adoption of such technology is a strategic move to diversify revenue streams and reduce reliance on interest-based income. This is particularly relevant in the current economic climate where interest rates are volatile and there is a pronounced shift in consumer behavior towards digital services. The ability of Marstone's platform to support paperless account opening, goal planning and portfolio management can enhance customer satisfaction and retention, which is crucial for financial institutions facing competition from fintech startups.

The digital wealth management sector has seen rapid growth and Marstone's platform aligns with the increasing demand for user-friendly, technology-driven investment services. As digital engagement becomes the norm, especially among younger investors, Marstone’s emphasis on a modern user interface and integrated financial planning capabilities positions it favorably in the market. The platform's scalability and flexibility are key differentiators that can attract a wide range of financial institutions, from community banks to larger entities.

Moreover, the involvement of existing investors like Equity Bank in the Series B round suggests that Marstone's offerings are well-received by its partners and are likely contributing positively to their operations. The strategic investment by specialized firms such as Castle Creek Capital and Launchpad Capital, with their focus on the financial services sector, further validates Marstone's market potential and the relevance of its solutions to the industry's evolving needs.

The closure of over 20 percent of bank branches in the last 15 years indicates a structural shift in the banking industry, with digital channels becoming increasingly important. Marstone's platform enables financial institutions to adapt to this change by offering wealth management services through digital means, which can lead to operational efficiencies and cost savings. This shift is not only a response to consumer preference but also a strategic adaptation to the broader economic environment where maintaining and generating deposits is crucial for liquidity and funding stability.

Non-interest income, such as fees from wealth management services, provides a buffer against the cyclical nature of interest rates and can contribute to the financial health of institutions. By leveraging Marstone's platform, banks can tap into this source of income and potentially enhance their financial resilience. The platform's role in risk assessment and asset allocation also aids in managing the financial risks inherent in offering investment services, which is particularly pertinent as banks navigate a complex regulatory and economic landscape.

Robust, integrated investing solution allows financial institutions to offer digital wealth strategies and deliver a personalized investing experience

NEW YORK--(BUSINESS WIRE)-- Marstone, Inc., a leading digital investment and wealth planning firm, today announced it has raised an $8M Series B financing round led by Mendon Venture Partners and South Rose Capital, alongside new investors including the Castle Creek Launchpad Fund. The round also includes existing investor Equity Bank (NYSE: EQBK). Marstone enables financial institutions to retain and generate deposits, increase non-interest income, and improve client servicing and satisfaction by launching a wealth practice for less cost than an average full-time hire.

“In today’s economy, financial firms are under immense pressure to retain deposits, increase fee revenue, and stem outflows to external, digital-first investment solutions. Marstone is the only enterprise wealth management platform with the flexibility, scalability, experience, and speed to market to meet these mandates,” said Margaret J. Hartigan, Co-founder and CEO, Marstone. “Banks today are looking for ways to protect margins and deposits. For many, digital investing and wealth planning are the most strategic paths toward those goals. We believe that banks with non-interest income at scale will be the ones to thrive, and agree that wealth offerings are the solution.”

Marstone’s platform has recently been adopted by Woodforest National Bank, Equity Bank, and Red River Credit Union to deliver a modern user interface, paperless account opening, flexible goal planning, performance reporting, data aggregation, portfolio trading and rebalancing, asset allocation, risk assessment, and more. Marstone solves many of the key issues facing financial institutions today: the shift in consumer preferences to digital engagement, the need for a harmonious customer experience, the rise in digitally-savvy investors in the generational wealth transfer, the desire for integrated financial planning capabilities, and the need for diverse revenue streams that don’t feed into fee and margin pressure. Banks have shuttered over 20 percent of their branches in the last 15 years. By adopting affordable technologies and platforms such as Marstone these institutions are able to better meet their customers' needs via digital channels that broaden both geographic reach and hours of availability.

“At Castle Creek Capital and Launchpad Capital we are uniquely focused on the community bank and financial services sector; our expertise enables us to navigate regulatory, political, and operating complexities of these markets,” said Tony Scavuzzo, Managing Principal, Castle Creek Capital. “Before entering any partnership we have to be sure that the executives share our vision for the future, which has never been more true than it is with Margaret and the Marstone team. They leaned in on wealth management years ago, seeing a future where their solution met both important service requirements of clients and delivered much needed revenue opportunities for community banks and other financial institutions. For countless institutions today, offering digital investment and financial planning is essential as they combat a challenging rate environment and evolving consumer needs in the digital space. We are proud to invest in Marstone at a critical inflection point as the market is coming to them seeking their platform, experience, and partnership.”

About Marstone

Marstone is a leading digital investment and wealth planning platform with a mission to enhance financial literacy, deepen financial inclusion, and humanize finance for all. Its enterprise-ready solution, Powered by Marstone, enables financial institutions to efficiently and affordably reach, acquire, and retain clients who seek straightforward information and engagement around their finances.

Marstone’s platform is multilingual and has expanded internationally to support opening US-based accounts for international investors. As a proven and trusted technology partner, Marstone has comprehensive integrations with custodians including Pershing, core banking platforms including Fiserv, account aggregation platforms, and investment managers. These integrations provide organizations the opportunity to deploy a technology that will help future-proof their businesses as consumer expectations for digital wealth management evolve.

Media Contacts

Kate Gundry

marstone@pluckpr.com

617-797-5174

Source: Marstone, Inc.

Marstone, Inc. has raised an $8M in its Series B financing round.

The Series B financing round for Marstone was led by Mendon Venture Partners and South Rose Capital.

Equity Bank (NYSE: EQBK) participated in the Series B financing round for Marstone.

Woodforest National Bank, Equity Bank, and Red River Credit Union have adopted Marstone's platform.

Marstone offers digital investing and wealth planning solutions to financial institutions to help them retain and generate deposits, increase non-interest income, and improve client servicing and satisfaction.
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equity bank is a $1.2 billion bank with corporate headquarters in wichita, kansas and branch offices throughout kansas and missouri. equity bank offers a full range of financial solutions, including commercial loans, consumer banking, mortgage loans, treasury management service, and the best solutions for your business. our focus is to provide the best banking experience for our customers. at equity bank, we never forget it's your money. equity bank now operates 28 banking offices throughout kansas and missouri, including the kansas city, topeka, and wichita areas plus hays, kansas, and warsaw, sedalia and warrensburg, missouri.