Sandbox Wealth, a turnkey banking solution for non-bank financial institutions, announced the pre-seed fundraise of $1.25 million in capital, led by NextGen Venture Partners, with participation from Northwestern Mutual Future Ventures, gener8tor, and RevTech Labs. The funding validates Sandbox’s vision to provide RIAs and Family Offices access to deposits, lending, and enterprise-grade analytics through its open architecture banking platform.
This new funding capital will support Sandbox’s efforts to attract top engineering talent and further R&D related to building out its three-sided marketplace for advisors, bankers, and their clients. And the company seeks to provide a seamless experience for advisors, who would be partners and support their ability to drive organic growth, offer a full suite of private banking solutions, and deepen client relationships. For lenders, it provides an attractive channel to grow their deposits and lending base with lower-risk borrowers, including High-Net-Worth Individuals with stable financial profiles.
Recent regulatory changes in banking are advantageous for Sandbox. For example, the CFPB’s Rule 1033 guidance mandates that certain data providers allow consumer-authorized third parties, such as Sandbox, access to covered banking data. New payment rails like Real-Time Payments (RTP) and FedNow will enable quicker access to data and capital between financial institutions.
Sandbox is also nearing the launch of its flagship banking and lending platform, along with securing relationships with advisors, Family Offices, and lenders ahead of launch. Another critical component of Sandbox’s open architecture platform is its early investment in building rigorous security protocols, culminating in earning its SOC 2 certification.
This voluntary framework audits a company’s ability to construct exhaustive controls that securely manage customer data in the context of its core infrastructure. The platform will also provide AI-based natural language processing for extracting insights from financial documents, driving significant efficiencies for advisors, lenders, and clients.
KEY QUOTES:
“We believe that Sandbox Wealth provides a compelling business model focusing on data, open architecture private banking, and AI-powered insights. The company has uncovered a lucrative segment at the intersection of liquidity solutions and wealth, which will fill a banking services gap faced by RIAs and Family Offices, with a diverse selection of products from many lenders.”
- Jon Bassett, Managing Partner, NextGen Venture Partners
“We are seeking to empower advisors with a broad range of banking and lending products from a network of lenders that meet the unique needs of sophisticated clients. Another important segment for Sandbox is banks, which now have another channel to deploy lucrative balance sheet products with a modern customer and employee experience. We can combine data aggregation and analytics with liquidity products clients want, enabling expedited underwriting on loans and easier money movement between institutions across our platform.”
- Ray Denis, CEO of Sandbox Wealth
