Fintech firm’s revenue grew 2.1x in 2020 as market forces galvanize digital transformation across the banking sector
MANTL, a leading digital account opening solution for banks and credit unions, announced $40 million in Series B funding, bringing total funding to $60.7 million. The investment was led by Alphabet’s independent growth fund, CapitalG, with participation from D1 Capital Partners, BoxGroup and existing investors Point72 Ventures, Clocktower Technology Ventures and OldSlip Group.
Community banks and credit unions make up 95% of all banking institutions. Currently, they rely on third-party technology providers whose systems are sometimes decades old and lack the modern capabilities deployed by today’s leading digital banks. This prohibits them from competing online and limits the options available to consumers who prefer banking digitally. Since its founding, MANTL has sought to empower community banks and credit unions to compete on a level playing field with money center banks and digital-only newcomers.
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MANTL believes that community institutions are critical to maintaining competition and equity in our financial system. MANTL’s technology modernizes these institutions’ most essential processes, transforming their cost structures and facilitating continued financial access and reinvestment within our local communities. This latest round of funding serves as further validation from the investor community of MANTL’s hypothesis that the strategic deployment of technology will define the competitive landscape in banking for years to come. It also validates that today’s banking infrastructure is in urgent need of innovation.
“There is incredible demand for platforms that empower vital community institutions to compete in an increasingly digital landscape. The MANTL team has demonstrated that they have the strongest product and the most compelling vision for how to tackle this legacy infrastructure challenge,” said Jesse Wedler, Partner at CapitalG. “In addition to developing world-class technology, MANTL is also completely reimagining the technology vendor-customer relationship. They’re far more than a vendor; instead, they’re a trusted advisor who helps institutions successfully navigate rapid growth, digitization and shifting consumer behaviors. We believe the MANTL team’s dedication to transparency and accountability is defining what banks can and should expect from their technology partners.”
Through its flagship account opening software, MANTL has optimized the consumer onboarding experience and helped community institutions — many of which are competing online for the first time — establish efficient and profitable digital operations. MANTL works with many of the fastest-growing community banks including Cross River Bank, Quontic and Midwest BankCentre to offer a superb digital experience to prospective and existing customers alike. As a result, these institutions have onboarded hundreds of thousands of new customers and raised billions of dollars in core deposits.
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“We’re challenging the legacy infrastructure that is holding community institutions back. Over the past few years, we have invested heavily in the capability to integrate with core banking systems and in ensuring that our products drive optimal business outcomes,” said Nathaniel Harley, Co-founder and CEO at MANTL. “Our customers’ long-term success is MANTL’s top priority and we see account opening as just the beginning. Our purpose is to be a true digital transformation partner for community banks and credit unions who share our vision for the industry.”
The Series B financing will enable the company to hire new talent and expand its product suite. This will include solutions that improve and digitize the onboarding experience for businesses of all sizes, from sole proprietors to complex commercial enterprises. The funding comes on the heels of a stellar year for MANTL, during which the company doubled revenue and headcount. MANTL also expanded the executive team with the recent appointments of Colleen Wilson (formerly of Blueleaf and Square) to Vice President of Product and Ian Fette (formerly of Slack, Squarespace, and Google) to Vice President of Engineering.
MANTL’s omni-channel platform enables people to open accounts from anywhere, on any device and at any time. The solution is among the fastest and most performant on the market: the average time to open an account through MANTL’s white-labeled platform is 2 min 37 seconds. The system automates application decisioning for over 90% of cases, all while reducing fraud by over 60%. This results in deposit growth that’s typically 4x faster than other solutions on the market and up to 10x more cost-effective than building a new branch.
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