LendKey Launches Private Deal Network For Financial Institutions To Buy And Sell Consumer Loans

LendKey launched Aliro, a deal network for trade-ready member firms who are seeking to manage liquidity and optimize balance sheets, according to a press release. According to the company, it already received $300 million in loan participation purchase commitments from more than 80 financial institutions for 2021.

While LendKey has traditionally been a lending-as-a-service platform for banks and credit unions, Aliro will expand the company's digital offering to serve both bank and non-bank originators. It will also encompass a broad array of asset types including residential mortgage, HELOC, solar, auto and personal unsecured loans, according to the release.

Aliro automates the process in which buyers and sellers can easily execute loan transactions, according to LendKey. It also provides end-to-end servicing, remittance, reporting and accounting functions.

"Aliro by LendKeyAliro by LendKey is a wholly digital network that will create efficiencies in the present-day market and democratize the loan sale and participation process," said Vince Passione, CEO and founder of LendKey. "Based on our experience of more than a decade in helping banks and credit unions manage their balance sheets through loan originations and participations, we saw an unmet need in the marketplace for a digital offering to standardize, automate, streamline and accelerate the often complex and time-consuming loan sale and participation process. By improving the efficiency of the secondary market for loan participations, as our starting point, will deliver a first-of-its-kind deal-making network not previously accessible in the market."

LendKey states that record deposits created a large amount of excess liquidity at banks and credit unions. Meanwhile, the company says non-bank originators are actively pursuing new capital sources to diversify dining and support the increased loan demand.