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

January 25, 2024 at 09:03 AM EST

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

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.