Lend-Grow presented to the Virginia Association of Community Banks (VACB) at the 2019 FinTech day to talk about models for Bank and FinTech partnerships and address some of the challenges smaller community banks face as consumers move online.
Over 35 participants from 15 banks attended. VACB represents 59 banks in Virginia ranging in size from $100 million to $10 billion in assets. Lend-Grow was one of seven FinTech companies that were invited to speak on bank-fintech partnerships. Other participants included Upgrade, MotoRefi, and StreetShares.
“We’re anxious to play a role in providing information on what these fintech companies want to do and how they want to partner with community banks,” said Steve Yaekel in an interview at cardrates.com, President and CEO of VACB. “It’s a winning formula because the fintech companies know that they need to have relationships with community banks to stick around for the long term.”
Nish Krishna, CEO of Lend-Grow, discussed what a winning formula could look like for banks and credit unions, especially as it relates to online lending. Smaller lenders tend to be shut-out of major online marketplaces and have lost market share. Many customers are not aware of their local banks’ superior rates and service. Lend-Grow connects these consumers with banks through an online marketplace.
The Lend-Grow marketplace helps address some significant challenges smaller banks face with under-deployed liquidity and lower returns due to over-exposure to secured loans. Lend-Grow focuses on higher margin Personal Loans and Student Loan Refinance loans. Banks can increase returns while balancing risk, compete with larger institutions, and ultimately serve the core purpose of many local institutions: connect to their local communities.
The forum also discussed some of the current fintech trends in the industry like the importance of fintech partnerships. Kevin Tweddle, Chief Operating Officer of Independent Community Bankers of America, highlighted what emerging technologies will be relevant to community banks and credit unions given the larger competitors moving into the space.
“Lend-Grow allows our lender partners to combine best of both worlds – the best-in-class digital experience that fintechs are renowned for, with knowledge of local markets that a lender would have in product and credit risk,” said Nish. “Lenders can get started on Lend-Grow in weeks as participation on our marketplace requires no upfront cost or IT integration.”
Lend-Grow’s full presentation can be found here.