Online Lenders

KeyBank acquires Laurel Road’s under-the-radar digital lending business

  • Laurel Road has quietly originated over $4 billion in consumer loans
  • KeyBank wants access to its digital, millennial-friendly platform
close

Email a Friend

KeyBank acquires Laurel Road’s under-the-radar digital lending business

KeyBank is acquiring Laurel Road, arguably the biggest digital consumer lender you haven’t heard of.

The acquisition: Based in New York, Laurel Road has rapidly scaled its business, reaching over $4 billion in originations since 2013. The firm has a specialty in student loan refinancing and has expanded into mortgages and personal loans.

What Key Bank gets out of it: Key will enhance its digital capabilities by leveraging Laurel Road’s proven ability to attract and serve professional millennial clients.

Key also taps into Laurel Road’s broad network of affinity partners offering its products, including trade associations, member groups, and employers. This aligns closely with Key’s approach to strategic partnerships.

“As we shared at our Investor Day in October, Key is focused on building targeted scale against discrete client segments through distinctive platforms,” said vice chair and president of banking, Chris Gorman.

“Laurel Road’s model of focusing on advanced degree professionals is not only consistent with Key’s approach but also complements our focus on specific sectors more broadly. We have invested significant resources in building our own strategic partnerships with fintech companies and we have yet to encounter a firm that so clearly matches our business and cultural approach to serving clients.”

Going forward as a brand: The Laurel Road lending business will continue to operate under the Laurel Road brand given the affinity to its customers and partners. Once the transaction is closed, Laurel Road’s three bank branches will operate as an independent business and likely under a different name.

0 comments on “KeyBank acquires Laurel Road’s under-the-radar digital lending business”

Member Exclusive, Online Lenders

Lending Briefing: Debit cards are taking over

  • This year, debit cards have emerged as the preferred payment method for the majority of US consumers, dethroning credit cards.
  • Younger generations are behind this switch – even though they're also getting credit cards, Millennials and Gen Zers prefer to pay with debit.
Iulia Ciutina | September 28, 2022
Member Exclusive, Online Lenders

Lending Briefing: SaaS SMB lending competition heats up as more fintechs enter the market

  • More fintechs are coming into the US market to offer banks solutions that digitize and streamline their SMB loan application and decisioning process.
  • As this segment of the market is drawing more interest, we sit down with Ranqx to delve into its strategy of scaling in the US market.
Iulia Ciutina | September 14, 2022
Online Lenders, Sponsored

Without the right data, your bank could be turning away qualified borrowers

  • Using alternative data provides a more holistic view of a consumer's creditworthiness.
  • Financial services expert Gary Harvey explains how FIs can achieve this using the right data sets.
Equifax | August 23, 2022
Member Exclusive, Online Lenders

Lending Briefing: Gen Z is expanding the credit market

  • The US credit card market continues to grow: the number of credit cards topped 500 million for the first time ever at the end of Q2 2022.
  • Younger generations are behind the increase, experts say, as more Gen Zers start their credit journeys.
Iulia Ciutina | August 17, 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
More Articles