CLEVELAND, April 3, 2019 /PRNewswire/ -- KeyBank National Association today announced that it has successfully completed the acquisition of Laurel Road Bank's digital lending business. The acquisition underpins KeyBank's strategic growth efforts, by enhancing its digital capabilities through customized, end-to-end lending products.
Laurel Road, based in New York City, has built a compelling student loan refinancing platform, which launched in 2013 and has rapidly grown to total more than $4 billion in loan originations to date. The digital platform offers a simple and personalized process with attractive refinancing options, providing customers with potentially meaningful savings over the life of their loans. In 2018, the company introduced an online mortgage platform using the same simple and secure lending technology to offer home buyers and owners a streamlined digital application process.
In acquiring Laurel Road, KeyBank continues its strategy of building targeted scale against defined client segments such as healthcare professionals, lawyers, and graduate students. Specific to Laurel Road, KeyBank will focus in three areas to drive growth:
- Expand national, digital-only lending capabilities: Capitalize on Laurel Road's sustained success in delivering its capabilities through strategic partnerships and direct-to-market branding to enhance KeyBank's digital-lending offerings to customers.
- Boost KeyBank's client experience through compelling digital tools: Maximize the industry-leading technology behind Laurel Road's platform to drive growth and improve efficiencies.
- Deliver a holistic banking experience to a targeted segment of consumers: Leverage Laurel Road's expertise within the millennial professional market to build on its success and expand product offerings to acquire, broaden, and deepen relationships.
"Part of KeyBank's strategy is to pair the best of the best in fintech with our industry expertise and scale. Now that the deal is officially closed, we're thrilled to begin work with Laurel Road," said Jamie Warder, Head of Digital for KeyBank. "The three pillars we've outlined aim to expand our business and offer more customer segments a comprehensive, digitally-led suite of services, and Laurel Road is a pivotal piece of this growth plan."
"We're deeply proud of what we've built at Laurel Road and share in Jamie's excitement to get to work integrating and growing our combined products and business," said Gary Lieberman, Founder and Chairman of Laurel Road Bank. "Laurel Road set out to deliver a simple yet superior lending experience for millennials at every financial milestone. As part of KeyBank, our capabilities and scale have even more potential, and together we're committed to enhancing the digital financial experience for all customers."
KeyBank seeks to accelerate growth by leveraging Laurel Road's national reach, existing infrastructure and technology capabilities. The Laurel Road brand will remain in place. 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. KeyBank was advised by KeyBanc Capital Markets Inc., and Debevoise & Plimpton. Laurel Road Bank was advised by RBC Capital Markets and Fried, Frank, Harris, Shriver & Jacobson LLP.
KeyCorp's (NYSE: KEY) roots trace back 190 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $139.6 billion at December 31, 2018. Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of over 1,100 branches and more than 1,500 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC, Equal Housing Lender.
About Laurel Road
Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products, mortgages and personal loans that helps simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation's largest bank-based financial services companies. For more information, visit www.laurelroad.com. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. The mortgage product is not offered in Puerto Rico. KeyBank is a Member FDIC, Equal Housing Lender. NMLS ID # 399797.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "outlook," "goal," "objective," "plan," "expect," "anticipate," "intend," "project," "believe," "estimate" and other words of similar meaning. Forward-looking statements represent management's current expectations and forecasts regarding future events. If underlying assumptions prove to be inaccurate or unknown risks or uncertainties arise, actual results could vary materially from these projections or expectations. Factors that could cause Key's actual results to differ from those described in the forward-looking statements can be found in KeyCorp's Form 10-K for the year ended December 31, 2018, as well as in KeyCorp's subsequent SEC filings, all of which have been filed with the Securities and Exchange Commission and are available on Key's website (www.key.com/ir) and on the Securities and Exchange Commission's website (www.sec.gov). Forward looking statements speak only as of the date they are made and Key does not undertake any obligation to update the forward-looking statements to reflect new information or future events.