One of the nation's largest bank-based financial services companies, KeyBank National Association, has announced in a press release that KeyBank will be acquiring Laurel Road Bank's digital lending business. Under the terms of the acquisition, Laurel Road's three bank branches located in southeast Connecticut are not part of this transaction. Key plans to enhance its digital capabilities and build its professional millennial clientele base through this acquisition.
New York City-based Laurel Road has built a name for itself in student loan refinancing. Founded in 2013, the end-to-end consumer lending platform has enjoyed tremendous growth, with more than $4 billion in loan originations to date. 2018 saw the firm expand its services into mortgage, using its technology to streamline the home buying experience from application to payment. Laurel Road found success in appealing to young, educated professionals.
"We are thrilled to have the opportunity to partner with Laurel Road and to continue expanding their business," said Vice Chair and President of Banking at Key, Chris Gorman, in a press release. "As we shared at our Investor Day in October, Key is focused on building targeted scale against discrete client segments through distinctive platforms.”
“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.”
“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."
"We are excited to combine our technological expertise with Key's industry expertise," added Gary Lieberman, Founder and Chairman of Laurel Road Bank. "We could not have found a better strategic partner to help take Laurel Road to the next level and continue our mission of serving millennial customers with technology that meets them where they are in their financial journey. Together, we will work to create an innovative digital financial experience for all of our customer segments."