Source: Shutterstock.
Regional lenders have been struggling to attract the next generation of banking consumers to fill the gap that will be left by an aging baby boomer population. As a result, traditional financial institutions have been rushing to acquire or invest in fintech companies to reach the student loan market. In 2017, the education finance start-up Earnest was purchased by Navient, a federal loan servicer and provider of asset management and business processing solutions, for $155 million. A subsidiary of Fifth Third Bancorp jumped into the fray in 2018, leading a $50 million financing round for student lender CommonBond. And, earlier this year, Key Bank acquired the digital student lending business of Laurel Road Bank for an undisclosed sum.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
