Member Exclusive

Lending Briefing: Five questions with Vince Passione, CEO and founder of LendKey

  • LendKey founder and CEO Vince Passione talks to Tearsheet about the evolution of the lending-as-a-service model, as well as the current macro lending landscape.
  • Alternative lending is getting traction in some global markets, driven by Big Tech increasing its footprint in financial services.
close

Email a Friend

Lending Briefing: Five questions with Vince Passione, CEO and founder of LendKey

Ten years ago, everyone wanted to build a direct lender, but LendKey took a different approach by going B2B. They wanted to work with lenders like regional banks and credit unions to help them power their own lending business. 

LendKey is now a well networked lending platform designed to deliver capital and liquidity management to banks, credit unions and fintechs. 

I spoke to the company’s founder and CEO Vince Passione about the evolution of the lending-as-a-service model, as well as the current macro lending landscape. 

How did LendKey start in the lending-as-a-service business?

Back in 2009, we saw the need and need was simple – many of the clients that we deal with, especially local community lenders, right community banks, credit unions, didn’t have the technology nor the capability to offer a digital lending solution.

We started in education lending, which was fairly digital as students were applying online. It made sense to enable local community lenders by building a lending as a service platform for them. 

Our solution became very popular, so we started moving into other asset classes as well. We built a full turnkey solution, providing the decisioning capability, the origination platform, as well as the servicing system, and also providing the call center and the operations.

What makes a good partnership between a technology provider and a bank?

The first and one that’s probably overlooked is about culture – the first thing you need to do is build a company that’s very focused on building a culture around serving a partner who has to deal with a prudential regulator. That means talking to those regulators and explaining what you’re going to do. In each instance, it wasn’t an easy conversation. Regulators don’t really like change. 

 


This content is available exclusively to Tearsheet Outlier members.

Tearsheet Outlier information and signup Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — only $49/mo. Already an Outlier member? Sign in to your account

0 comments on “Lending Briefing: Five questions with Vince Passione, CEO and founder of LendKey”

Blockchain and Crypto, Member Exclusive

Can crypto become the new cash? A look at adoption patterns for consumers and merchants

  • Market volatility raises concerns, but recent data suggest that cryptocurrencies may be on their way to adoption for commerce.
  • Most consumers want to be able to pay with crypto, and merchants are starting to cater to this need in earnest.
Rabab Ahsan | August 08, 2022
Green Finance, Member Exclusive

Green Finance Briefing: What’s a sustainable business strategy in banking?

  • Executives need to start thinking of how to create and execute a sustainability strategy as the economy transitions to a carbon-neutral future.
  • At Tearsheet's Banking on the Planet conference, speakers outlined how financial companies can start on their sustainability journeys – it's all about education, collaboration and transparency.
Iulia Ciutina | August 05, 2022
Member Exclusive, Payments

Payments Briefing: What do FIs need to know about payments in the metaverse?

  • This week, we look at how and why traditional FIs and fintechs should be thinking about payments in the metaverse.
  • We also discuss why card giants like Mastercard, Visa, and Amex are getting involved in sonic branding.
Ismail Umar | August 04, 2022
Member Exclusive, Online Lenders

Lending Briefing: The digital lending fintechs attracting capital in a down market

  • Funding is down across the fintech sectors compared to last year, with less capital going to big segments like payments, baking, and lending.
  • We are taking a look at some of the digital lending fintechs that still secured financing in this past quarter, in spite of the down market.
Iulia Ciutina | August 03, 2022
Data Snacks, Member Exclusive

Data Snack: Are banks making the most of marketing?

  • As banks become more of an option among many in consumers’ eyes, banks are paying more attention to how to better market themselves.
  • But gaining insight from the marketing data collected may still be a challenge for a lot of incumbents.
Rivka Abramson | August 02, 2022
More Articles