Several US-based community banks have reportedly invested $9.5 million into artificial intelligence (AI)-enhanced, API-driven banking technology provider, called Neocova.
Developed specifically for community banks, Neocova’s cloud-powered core platform handles the management of customers, their deposits, and any loan products they might be using.
The latest investment round includes contributions from community financial institutions including Bank of St. Elizabeth, Coastal Community Bank, First Financial, Kearny Bank, Provident Bancorp, Inc. and Sunwest Bank.
Brice Luetkemeyer, president and CEO of the Bank of St. Elizabeth in Missouri, stated:
“We’re putting our money where our mouth is to help banks be more successful in serving their customers.”
Luetkemeyer added that the Bank of St. Elizabeth invested into Neocova’s operations because their cloud-based, API-driven technology provides the flexibility and efficiencies that financial institutions require to offer modern banking services.
Luetkemeyer remarked:
“Neocova has a deep commitment to cybersecurity that puts customer safety and compliance at the forefront.”
The company says it plans to use the capital acquired to further expand its product and development teams.
Sultan Meghji, CEO and co-founder at Neocova, noted:
“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.”
As mentioned on Neocova’s official website:
“Banks and credit unions know what they need to find success, which is why we took a listen-first approach when designing our technology solutions.”
The Neocova team added that by focusing on the main concerns or problems of existing community financial institutions, the company developed solutions that address a critical need in the industry: “modern, secure technology without the long-term, constrictive contracts and breakage fees that have become the norm.”