If you are keen of financial technology you have likely heard of LendKey. If you have not, you may be missing a great opportunity to refinance student loans, get quick student loan consolidation and so much more. LendKey is an innovative online lending platform that connects borrowers with local banks and credit unions to refinance student loans more efficiently.
The Lending Mag recently had the opportunity to speak with Mr.Vince Passione, Chief Executive Officer of LendKey and learn about a few of the major developments that are happening with the company and how everyday consumers can benefit themselves from these current happenings.
Recent Developments For LendKey's Lending-as-a-Service Platform
The company deployed $800M in loans to over 35,000 borrowers. LendKey's platform was also able to get a $125M commitment from its network of lenders which consists of 300+ credit unions, community banks and other financial institutions that are willing to refinance student loans.
"Our growth demonstrates that traditional lenders have a solid opportunity in online lending," said Vince Passione, Chief Executive Officer and Founder of LendKey. "The LendKey platform enables banks and credits unions to offer their low-rate loans online, directly to consumers. With our technology, community financial institutions can succeed in the $3.2 trillion consumer lending market, offering increased choice, transparency, lower rates and a seamless digital experience."
The financial backing of LendKey by financial institutions both large and small shows a belief in their platform and vision to help American students refinance student loans. LendKey's mission is to transform a $3.2 trillion consumer lending market by connecting thousands of banks and credit unions with millions of borrowers online.
That mission, if accomplished will greatly help the rapidly increasing amount of students in need of refinancing options, young people coming out of college are burdened with more student debt than ever and are severely in need of financial solutions to help them get control of their debt and set their financial trajectory on the right course. The opportunity to refinance student loans will change their lives.
In order to make their lofty goal a reality, LendKey also secured up to $1 billion in a major financing commitment from MidCap Financial, a leading specialty finance firm that is managed pursuant to an investment management agreement by a subsidiary of Apollo Global Management, LLC (NYSE: APO) (together with its consolidated subsidiaries, "Apollo"), one of the world's leading alternative investment managers is stepping in to help refinance student loans.
The financial commitment will be used by MidCap to purchase up to $1 billion of student consolidation loans originated on the LendKey platform with potential further participation in efforts to refinance student loans to be provided by investment funds managed by Apollo.
This relationship creates a one-of-a-kind, private secondary market for the loans that already adhere to credit union underwriting standards and will retain the issuing credit union’s identity, brand and member relationship even after the loans have been sold.
A Platform To Reduce High Interest Rates & Increase Loan Availability
Servicing student loan refinancing online through the credit union conduit is a novel solution that brings with it the benefits of low cost loan funding for consumers, great business-to-consumer relationships that credit unions are known for and increased loan availability online to more readily refinance student loans.
LendKey's loan service is designed to provide critical assistance to borrowers and cosigners in search of more reasonable student loan refinance rates while attracting them to the credit union marketplace, Passione said. The company is successfully changing the way people in need of loans and needing to refinance student loans interact with their community financial institutions by employing a unified online application process that enables borrowers to get low-interest loans directly from community banks and credit unions.
For many Millennials who are burdened with student debt, as well as the parents and relatives who often are called upon to cosign for the loans, the convenience of online lending options and ability to refinance student loans more easily is increasingly appealing. Refinanced and consolidated student loans offer consumers the opportunity to combine multiple loans at higher interest rates into a single loan at lower and more reasonable rates, giving young people a chance to build a healthy financial future without being severely crippled by student debt.
LendKey Continues To Expand Loan Product Offerings - Refinance Student Loans
Students are not the only type of borrower that can benefit though. In addition to private student origination and consolidation loans, LendKey has begun expanding into other loan products. On April 3rd, the company launched an auto loan program in partnership with TrueCar Inc., a concierge auto buying service based in Santa Monica, Calif. that offers car buyers guaranteed discounts based on make and model national average prices.
Participating borrowers receive coupons representing guaranteed prices from TrueCar and coupons with approved auto loan amounts from credit unions associated with LendKey, they can then take the loan coupons to their car dealer when it is time to make the purchase.
LendKey also has expanded its “green loan” construction loan program piloted in New Jersey to become a bona fide unsecured home improvement loan program. The firm plans to re-launch the program nationally later this year, Passione said.
“We followed the demand from our credit unions and listened closely to what they wanted,” Passione said. “They’re great partners.”