LendKey, the leading lending-as-a-service solution for banks and credit unions, today announced $13 million in Series C funding, $8 million in equity and $5 million in debt financing.
North Atlantic Capital, based in Portland, ME, led the round with participation from each of LendKey's existing investors including DFJ, Updata Partners, Gotham Ventures, and TTV Capital.
"Since LendKey's launch eight years ago, we have experienced steady growth. This new round of funding will help support this growth allowing us to meet the strong bank and credit union demand for our service," said Vince Passione, chief executive officer, LendKey. "Traditional financial institutions are now more than ever adapting to evolving customer needs to remain competitive and better reach millennials. LendKey empowers these institutions to compete in today's lending market by digitizing their loan businesses."
"This is a very strong team with very impressive industry knowledge and background, solving a real need for banks and credit unions," said Mark Morrissette, Managing Director at North Atlantic Capital. "With more than a dozen bank investors in our current fund, this is a great fit for us."
The Series C funding will enable the company to expand its services and staffing. LendKey plans to grow its regional office in Cincinnati, Ohio and expand its account development and sales teams.
Fifty-nine percent of banks have invested in a competitive digital technology program as part of their business strategy, according to an Accenture study. Banks are eager to meet digital demand with 51 percent of U.S. adults banking on their mobile devices. Many banks do not have the in-house resources to build their own digital lending solutions for products such as private student loans, student refinancing and home improvement loans. LendKey's lending-as-a-service solution transforms traditional financial institutions into profitable digital lending businesses and manages the process, which includes demand generation, online decisioning, loan origination, customer service and balance sheet management.
LendKey partners with hundreds of banks and credit unions to help them conduct their digital lending business via its complete lending-as-a-service solution. Some of LendKey's prominent clients include Navy Federal, McGraw-Hill Federal Credit Union and WSFS Bank. LendKey currently helps lenders conduct loan programs in the following asset classes: private student loans, student loan refinancing, auto and home improvement loans.