NEW YORK (2/28/13)--LendKey (formerly Fynanz), a cloud-based lending solutions provider, added 58 credit union clients and 1.3 million credit union members in 2012 to its cloud-based loan origination and servicing platform.
LendKey is a CUNA Strategic Services provider and has more than 235 credit union partners that leverage its lending platform for private student loan and private student loan refinancing products.
To date, credit unions have refinanced more than $125 million in private student loan debt and have saved borrowers roughly $25 million in interest payments.
"In 2012 we helped our lending partners increase their access to qualified borrowers seeking fairly priced student loan products," said Vince Passione, LendKey CEO. "Our demand-generation services resulted in a 30% increase in school relationships for our lending clients and tripled the size of their reseller network."
LendKey's platform includes demand-generation services that help lenders build lending ecosystems and grow their portfolio while still mitigating risk.
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. More than 75% of the students borrowing through its private student loan program were credit union members in need of higher education financing, according to Alice Stevens, chairman of cuStudentLoans and chief operating officer of First Financial FCU in Wall, N.J.
The program also helped recent graduates refinance and consolidate existing student loan debt. They generally face limited repayment options, and look to reduce the interest rate on their student loans.
"Millions of recent graduates are facing high-interest student loan debt that makes their financial lives difficult to manage," Stevens said. "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."