NEW YORK–(BUSINESS WIRE)–LendKey, a leader in managing digital lending networks for credit unions and banks, today announced that it has expanded the capabilities of ALIRO, its platform that enables the sale and purchase of loans. Launched last February, ALIRO’s loan participation programs allow financial institutions to buy and sell loan participations, partner more easily with fintechs, and exchange loans with each other to optimize their balance sheets. The ALIRO suite of products is now enhanced to meet ad-hoc loan sales and bespoke balance sheet needs, in addition to programmatic forward flow transactions.
LendKey has an active client portfolio of over 325 financial institutions, representing over $400 billion in assets available on the balance sheet. LendKey will host a webinar to demonstrate the ALIRO enhancements on Tuesday, February 8, 2022.
ALIRO provides a transparent and customizable platform to address the common challenges facing credit unions and banks today – whether selling loan participations in a single pool or establish a programmatic and recurring forward sales program – ALIRO is a tool to help optimize balance sheets, liquidity, and streamline ongoing payment reporting and disbursement requirements. Financial institutions leverage ALIRO’s technology to build lending networks with existing partners as well as find new buyer and seller opportunities. ALIRO’s lending networks include in-school student loans, education refinance and home improvement loans issued by LendKey and its lending partners, and other asset classes issued by credit unions or third-party fintechs.
To launch the latest enhancement to the ALIRO platform, LendKey has partnered with Neighbors Federal Credit Union, a Louisiana-based credit union with over $1.1 billion in assets. The deal, executed on the ALIRO platform, facilitated a one-time sale of Neighbors’ in-house auto loans to two credit union investors. All parties were seamlessly integrated on the ALIRO platform where they performed the due diligence and digitally executed the sale, including the transmission and settlement of funds. Additionally, all ongoing reporting and remittances will take place on the platform.
“Given LendKey’s 10+ years of experience working with credit unions and banks, our ALIRO platform is uniquely positioned to facilitate partnerships between traditional financial institutions and fintech and can now manage one-time lending operations in addition to recurring programmatic partnerships,” said Mike Stallmeyer, COO and CFO of LendKey. “By providing a simplified and streamlined transaction process, we have removed traditional barriers so that more credit unions and banks can easily enter the loan participation market, making it easier for financial institutions to diversify their portfolios and access a variety of loan types, on their terms.
“LendKey is a trusted name with a strong track record in building digital lending networks for credit unions and banks and with the launch of ALIRO’s spot selling capabilities, they have given us another opportunity to sell loan participations and manage liquidity. From data transmission to payment remittance, settlements and reporting, LendKey has helped streamline the entire sales process,” said Cassidy McFarland, Vice President, Treasury of Neighbors Federal Credit Union.
To register for LendKey’s webinar demonstrating ALIRO’s platform capabilities and enhancements, please click here. The webinar will take place on Tuesday, February 8 at 2:00 PM EST.
To learn more about LendKey’s ALM and Lending Solutions, please visit LendKey.com.
LendKey provides high-quality consumer loans directly to financial institutions through its Digital Lending-as-a-Service model and indirectly through ALIRO by LendKey, an innovative transaction network designed to enable financial institutions to buy, sell and negotiate loans. The platform provides the technology, service, and support that financial institutions need to establish a strong digital lending presence, acquire loans for their balance sheets, and build lasting relationships with their partners and customers. Lenders optimize their offerings by leveraging LendKey’s fintech platform for demand generation, online decision-making, loan origination, loan servicing, compliance expertise, risk analysis and exclusive balance sheet options. LendKey currently manages over $2 billion in loans and has helped community capital providers deploy over $4 billion in loans since 2009. Visit LendKey for more information.