KeyBank has reportedly acquired another Fintech. This time, the company has bought a business that works cooperatively with consumers who may have outstanding student loan debt.
The Cleveland-headquartered banking institution confirmed on Monday (May 10, 2022) that it had acquired GradFin, which provides counseling to individuals looking for help with student loan debt.
As noted in a release, KeyBank described the firm as a leader in the Public Service Loan Forgiveness counseling space.
KeyBank has already acquired several Fintechs during the past few years. Fintech is now a fast-evolving sector that’s primarily focused on streamlining traditional banking and financial services.
Gradfin notes that it is leveraging smart technology and personalized advice in order to assist consumers with following the “perfect” or most suitable student loan plan. The firm was established back in 2015 and is currently based in Philadelphia.
According to the firm’s official website, it has now consulted with around 60,000 student loan borrowers since its inception in 2015. The firm also works cooperatively with financial advisors and workers who help pay back workers’ student loans.
Jamie Warder, head of digital at Keycorp, said:
“GradFin combines the best of digital and human interaction to create a unique client experience. Advisors thoroughly understand the economic environment as well as the specific needs of healthcare providers, while the digital platform provides fast and effective solutions for debt relief and government forgiveness programs.”
KeyBank’s management further noted that the latest transaction should improve the firm’s product offering for healthcare customers.
The banking institution reportedly owns Laurel Road, which is an online or virtual bank for individuals in the healthcare industry.
KeyBank also mentioned that it is committed to acquiring other firms to further expand its digital or online presence.
KeyBank had alluded to this specific strategy during its recent earnings calls with various investors.
KeyBank also noted this past Monday that the acquisition of GradFin is the organization’s “next step in providing digital innovation at scale through strategic partnerships with fintechs.”
The firm had acquired AQN Strategies and XUP Payments last year and in 2019, KeyBank bought Laurel Road’s advanced tech, integrating its unique client experience.
Keybank has also entered key partnerships with Fintech firm such as AvidXchange, BillTrust and Bill.com.