Neocova gains $9.5m backing from community banks for AI-led tech
Neocova, a new banking technology vendor based in St. Louis, Missouri, has raised $9.5 million in a Series A funding round featuring a number of community banks.
Neocova CEO Sultan Meghji
Bank of St. Elizabeth, Coastal Community Bank, First Financial Bank, Kearny Bank, Provident Bancorp and Sunwest Bank were among the investors in a round led by Hovde Group.
Neocova plans to offer what it calls “AI-powered” software and solutions to the community bank and credit union sector of the American banking landscape, tackle vendor lock-in and offer firms an alternative to big technology firms.
“By removing restrictive contracts and offering modern, secure and affordable technology, we enable community banks operate more efficiently and effectively,” it states on its website.
Related: Neocova comes out of stealth mode
The firm will be using the funding to build out its technology offering and expand its product team. Neocova has also announced a deal with Coastal Community Bank which will see it developing a reporting and monitoring platform.
President and CEO of the Bank of St. Elizabeth, Brice Luetkemeyer, says: “We invested in Neocova because their cloud-native, API-backed technology delivers much needed flexibility and efficiencies that banks are not getting today.
“Also, Neocova has a deep commitment to cybersecurity that puts customer safety and compliance at the forefront.”
Neocova was founded by former publisher of Bank Director magazine Kelsey Weaver, Apiary + Co founder Lindsay Lockhart, and former managing partner at consultancy firm Virtova, Sultan Meghji.
Neocova claims to have close relations with the regulatory community in the central and wider US. The firm’s recent hires include former Missouri Finance Commissioner Lee Keith and former director of enterprise information security at the CIA Robert O’Connor.
