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

‘Banks can look at you and say, we don’t want to look at you’: Payability wants to serve the seller-entrepreneur

  • Payability, a company that finances online SMBs, saw major success over the course of the pandemic.
  • But creating a risk model that can shift and swerve through the world of seller sites is a challenge.
Rivka Abramson | October 13, 2021
Online Lenders

What’s Facebook up to with its Invoice Fast Track program?

  • Facebook hasn't found a lot of success in its fintech efforts.
  • Now, the firm has shifted from B2C to B2B with a new invoice financing solution.
Zachary Miller | October 11, 2021
Online Lenders

‘Not moving in any direction is worse than the wrong direction’: How banks can kickstart lending to small businesses

  • With the right products and services, small businesses are becoming a promising revenue stream
  • But with little experience with SMBs, a lot of incumbents still struggle to service them
Rivka Abramson | October 07, 2021
Online Lenders

How Petal’s product strategy extends access to credit through technology

  • Petal is a no-fee credit card company ideal for credit builders and rebuilders.
  • In three years, Petal has launched three products and a B2B API.
Shehzil Zahid | September 23, 2021
Member Exclusive, Online Lenders

Mission Lane’s approach to helping people access credit with Shane Holdaway

  • Shane Holdaway spent close to two decades working in large traditional financial institutions.
  • As CEO of Mission Lane, he's serving a million customers that banks tend to overlook.
Zachary Miller | July 30, 2021
More Articles