Lending-as-a-service solution for banks raises $13m

By Ryan Weeks on 20th July 2017

P2P/Marketplace LendingAlternative CreditChallenger Banks

LendKey clinches $13m Series C, with $8m in equity and another $5m in debt.

Lending-as-a-service solution for banks raises $13m

A leading lending-as-a-service solution for banks and credit unions named LendKey has closed a Series C investment round, bringing its total fundraising to date to $27.5m. The Series C investment is split into $8m in equity and $5m in debt financing.

The round was led by North Atlantic Capital, which specialises in providing growth capital to innovative technology firms. The full complement of LendKey’s existing investors also took part, including DFJ, Updata Partners, Gotham Ventures and TTV Capital.

The money will be used to grow its regional office in Cincinnati, Ohio and to hire more people.

“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 (pictured), chief executive officer of 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.”

LendKey allows financial institutions to compete with their digital rivals through a white-labelled lending-as-a-service solution, which helps firms to attract new business, grow relationships, manage liquidity and mitigate risk, in addition to managing the entire lending process online. 

The company’s key clients include Navy Federal, McGraw-Hill Federal Credit Union and WSFS Bank. It has helped to deploy more than $1.5bn to date. 

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