INSIKT (pronounced “in-seekt”), a Lending as a Service (LaaS) company, announced on Monday it has raised $210 million through its social bond securitization program in 2018, which was backed by 174,447 of its responsible, credit-building consumer loans. According to INSIKT, this has propelled the total securitization volume to $353 million, over nineteen issuances, since the program’s inception in 2013. The company reported:
“The latest social bond issuance marks INSIKT’s eighth placement in 2018, a record for the company, and, arguably, the industry in a one-year time span, highlighting the power of recycling capital back into low-income communities.”
INSIKT also revealed it has built significant momentum in social impact investing as it makes headway with its social bond platform supporting the company’s mission to bring more families into the opportunity economy. While sharing more details, James Gutierrez, founder and CEO of INSIKT, stated:
“We know the ‘American Dream’ takes good credit. In the US, there is a major credit crisis in low-income communities, widening the chasm between the haves and the have nots. INSIKT’s approach is a game-changer for the social capital world that allows us to expand our loan-making services to people in need at increasingly lower costs.”
Ege Tanor, Vice President of Capital Markets at INSIKT, also commented:
“We are extremely excited about the success and continued growth of our social bond program and the difference it is making in bringing families into the opportunity economy. Our CDFI designation was a major win for our borrowers because it provided an avenue for banks to use their capital to fund loans that help low income families.”
INSIKT added its 2019 goal for the program is to accelerate investor portfolio expansion to a wider audience of banks, foundations and eligible accredited investors looking for scalable social impact with a meaningful return.