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LendKey Adds 58 Credit Unions and 1.3 Million Credit Union Members to Loan Platform in 2012
NEW YORK, NY (February 25th, 2013) – Along with its major rebranding preparations, cloud-based lending solutions provider LendKey (formerly Fynanz) added 58 credit union clients to its cloud-based loan origination and servicing platform. Today, LendKey partners with the Credit Union National Association and over 235 credit union partners that leverage its lending platform for private student loan and private student loan refinancing products.
LendKey’s platform includes demand-generation services that help lenders build lending ecosystems and grow their portfolio while still mitigating risk. Demand-generation services, in the student lending verticals, are driven by marketing the existing membership base of lending partners, as well as membership growth through school relationships and reseller partnerships. “In 2012 we helped our lending partners increase their access to qualified borrowers seeking fairly priced student loan products,” said Vince Passione, CEO of LendKey. “Our demand-generation services resulted in a 30% increase in school relationships for our lending clients and tripled the size of their reseller network,” said Passione.
cuStudentLoans, a credit union created and managed private student loan program, is LendKey’s largest client leveraging its cloud-based platform to gain market reach and mitigate risk through a loan participation program. According to Alice Stevens, Chairman of cuStudentLoans and COO of First Financial Federal Credit Union, more than 75% of the students helped through its private student loan program were credit union members in need of higher education financing.
The program also helped recent graduates refinance and consolidate existing student loan debt, who generally face limited repayment options, and are looking to reduce the interest rate on their student loans. “We expect a strong 2013 for credit unions interested in refinancing high interest student loan debt held by both their existing members, as well as young graduates that are prospective members, who are just beginning their financial lives on their own,” Stevens says. “Millions of recent graduates are facing high interest student loan debt that makes their financial lives difficult to manage. Credit unions can continue to be their super heroes by helping them refinance their debt and provide other financial products to assist them with their money management.”
To date credit unions have refinanced over $125 million in private student loan debt and have saved borrowers over $25 million in interest payments.
About LendKey
Formerly private student lending solutions provider Fynanz, LendKey, located in New York, offers cloud-based technology to provide the essential infrastructure for credit union or any party to quickly, securely, efficiently, and profitably lend to anyone else – from those offering loans directly to those structuring new types of loans. LendKey’s lending solutions to credit unions nationwide primarily provide loans pertaining to automobiles, students, or green efforts. The company’s clients and partners, 235 credit unions and the Credit Union National Association, have exclusively leveraged the platform for private student lending purposes. For more information, visit www.lendkey.com.
About cuStudentLoans
cuStudentLoans is a leading network of progressive credit unions offering private student lending options to students and families nationwide. Formed in 2010, CU Student Lending, LLC is comprised of over 150 progressive credit unions that built a member-responsive private student loan program using a common underwriting and pricing platform. The program, which consists of both the cuScholar Private Student Loan and cuGrad Private Student Loan Consolidation, includes loan participations to enhance and mitigate risk. For additional information, visit http://www.custudentloans.org/.