Capstack Technologies, a bank-to-bank marketplace aimed at reducing asset risk, has received a strategic investment from Citi Ventures. The specific amount of the investment has not been disclosed, following a $6 million funding round last year for the Miami-based company.
The U.S. banking sector has faced significant challenges in recent years, notably influenced by high-profile failures like Silicon Valley Bank. These issues stem from asset concentration risks, liquidity challenges, and rising concerns related to commercial real estate investments.
Capstack’s marketplace seeks to foster transparency, collaboration, and efficiency, enhancing profitability while mitigating risk through asset diversification for the 4,123 community and regional banks in the U.S., which collectively manage assets totaling $3.4 trillion.
Jeff Flynn, director of Citi Ventures, stated, “Capstack Technologies’ innovative approach could fundamentally change the way smaller banks manage risk and grow their businesses, and ultimately could create opportunities for Citi to engage differently with this sizable segment of the financial services ecosystem.”
In addition, Capstack has established an advisory board and expanded its leadership team. New members include Trey Maust, chairman of Lewis & Clark Bancorp; Patrick Kennedy, executive chairman of TransPecos Banks; and Dub Sutherland of Kennedy Sutherland. David McArdle has joined as head of banking relationships, while Randy Riffle takes on the role of head of customer and platform operations.