KeyBank National Association announced on Wednesday KeyBank and Laurel Road Bank have entered into a definitive agreement for the acquisition by Key of Laurel Road’s digital lending business. KeyBank reported that through the acquisition it will enhance its digital capabilities with customer-centric technology.
According to KeyBank, Laurel Road was launched in 2013 and has more than $4 billion in loan originations. Last year, the company introduced a platform for mortgages using securing lending technology to offer home buyers and owners a “streamlined” experience, from application to payment. Laurel Road has created a network of affinity partners through which it is a preferred provider of its products. This expansive platform includes partners across trade associations, member groups, and employers and aligns closely with Key’s approach to strategic partnerships. Speaking about the acquisition, Vice Chair and President of Banking, Chris Gorman, stated:
“We are thrilled to have the opportunity to partner with Laurel Road and to continue expanding their business. 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. 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.”
Gary Lieberman, Founder and Chairman of Laurel Road Bank, went on to add:
“We are excited to combine our technological expertise with Key’s industry expertise. 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.”
Laurel Road’s three bank branches located in southeast Connecticut are not part of this transaction. Financial terms of the transaction have not been disclosed