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”

Online Lenders

Through software, Drummond Community Bank moves into personal and auto lending

  • The bank will provide its customers with AI-powered personal and auto loans.
  • AI-based lending platforms can give community banks a competitive advantage over larger banks.
Ismail Umar | May 10, 2021
Member Exclusive, Online Lenders

With the cannabis market set to double, lenders hope to capitalize on the opportunity

  • Financing in the space typically has come in the form of equity investments.
  • Federal deregulation would give more lending options to cannabis businesses.
Shehzil Zahid | May 05, 2021
Member Exclusive, Online Lenders, Podcasts

‘We see a lot of whitespace in credit cards for near prime customers’: Avant’s James Paris

  • Avant was one of the first digital lenders.
  • Almost eight years later, CEO James Paris is leading the company into new financial products.
Zachary Miller | December 21, 2020
Member Exclusive, New banks, Online Lenders

Digital lender LendUp launches a challenger bank

  • LendUp has introduced its own challenger bank, Ahead Financials.
  • Ahead will provide digital banking and financial education to emerging middle class consumers.
Rimal Farrukh | December 02, 2020
Member Exclusive, Online Lenders

What Affirm’s IPO and Chase’s new installment product say about the BNPL market

  • Affirm files to go public and Chase unveils BNPL feature My Chase Plan.
  • As the pandemic rages on, BNPL products remain more relevant than ever.
Rimal Farrukh | December 01, 2020
More Articles