By Christopher Delporte
Miami-based Capstack Technologies is creating what it claims is the first online bank-to-bank marketplace designed to help financial institutions mitigate asset risk. The startup recently secured funding from Citi Ventures and has expanded its advisory board of small and midsize regional and community banks.
Citi’s recent investment, the amount of which was not disclosed, adds to a $6 million round of fundraising last summer. The advisory board includes Trey Maust, chairman of Lewis & Clark Bancorp in Oregon City, Oregon, and Patrick Kennedy, executive chairman of TransPecos Banks in San Antonio, Texas.
Capstack Technologies’ CEO told the ABA Banking Journal that the company’s technology is designed to align with the U.S. financial sector’s push to diversify loan portfolios—particularly highlighted by risks exposed by the bank failures of the past year. The goal is to create a national marketplace to sell or buy loans and deposits—giving small and regional banks access to national resources, helping them to mitigate asset risk often related to being tied to local and regional resources. According to figures cited by Capstack, the U.S. was home to 4,123 community and regional banks in 2023, comprising nearly 97% of all banks and collectively overseeing assets valued at $3.4 trillion.
“With small and regional banks still very localized, it means that they are not as diversified when it comes to their depositor and lender base,” said Michal Cieplinski, CEO of Capstack Technologies. Cieplinski said the product—which the company hopes to launch in April—is being closely developed with input from banks so that the technology can best meet financial institution’s needs from day one. “We couldn’t do this without their input throughout development.”
Jeff Flynn, a director with Citi Ventures said Capstack’s technology “could fundamentally change the way smaller banks manage risk and grow their businesses.”
Capstack Technologies also added to its leadership team with bank-facing roles. David McArdle was hired as head of banking relationships, and Randy Riffle is the startup’s head of customer and platform operations. According to a news release, McArdle will focus on streamlining processes for C-suite executives in community banks, and Riffle will work on banks’ operational efficiencies and customer experiences. “This technology epitomizes the requirement of all bank sizes to create efficiencies in the participation and whole loan marketplace model,” Riffle said.
Cieplinski said all of these announcements align at a “pivotal moment” for the company, calling the expansion “a clear testament to our unwavering commitment to innovation” and creating “new standards in the banking technology sector.”
