LendKey Introduces Bellwether Report On Private Student Loans
Research Identifies Key Industry Growth Among 275 Credit Unions and Banks
Sep 14, 2016, 07:01 ET
NEW YORK, Sept. 14, 2016 /PRNewswire/ -- LendKey, the financial technology company at the center of the lending ecosystem, today released an inaugural industry-specific report entitled Positive Signal for Private Student Loans. The first-of-its-kind report is a result of the company's flagship Lending-as-a-Service offering to financial institutions of all sizes, and is the first in a series that aims to share summarized risk and other unique insights within data from LendKey's 275 bank and credit union client-lenders nationwide.
"What we're seeing is a few steady indicators that private student loans are still an important asset class for lenders to diversify and grow their businesses. This report alights a corner of the lending universe that shows delinquencies and defaults are experiencing less volatility, and that the loans themselves perform better with underwriting and cosigning requirements—validating industry numbers overall," said Salil Mehta, SVP of Credit Risk & Analytics at LendKey. Mehta was appointed earlier this year.
Highlights of the report include:
- Originations and portfolio balance
- Performance of the LendKey client-lender portfolio over time
- Cosigner statistics and geographical spread such as 90% of loans are originated with a cosigner and most are from northern states
- Over the last seven years, defaults and charge-off rates have significantly declined
- Statistics and growth in serial borrowing
LendKey surpassed the billion-dollar mark in capital deployment on behalf of client-lenders, in April, and the report showcases the company's growth since launch in 2009. Vince Passione, CEO & Founder of LendKey, noted, "As Lending-as-a-Service pioneers, our business model is one of service and innovation for our clients and borrowers. Our growth in revenue in the last seven years is directly indicative of our client-lenders' growth and their continued success with private student lending. At no time has our industry been more under a microscope—new regulations, sweeping change among peers, and the new expectations of borrowers, have created a challenging environment for traditional lenders, and we're delighted that we can help them deliver new options to meet their customers' needs."
To access the full report, please visit: http://business.lendkey.com/positive-signal/. The company will release another report in Q4 of this year.
ABOUT LENDKEY – LendKey is changing the way financial institutions do business through the market's most advanced lending platform and network. Lenders and asset managers are partnering with LendKey to bring borrowers a powerful, white-labeled lending platform that has redefined Lending-as-a-Service—and gives financial institutions of all sizes the ability to attract new business, grow relationships, manage liquidity, and mitigate risk. LendKey was founded in 2009, in a difficult market for financial institutions that still needed to compete and grow without adding capital or operational costs. Based in New York and Cincinnati, LendKey is at the center of the lending ecosystem—providing institutional investors, banks, credit unions, affiliates, and borrowers with access, efficiency, and speed. For more information on LendKey, visit business.lendkey.com.
Media Contact: Melissa Barto / JCUTLER media group / [email protected]
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SOURCE LendKey