KeyCorp has purchased a fintech company that helps borrowers manage their student loans — the latest move in its
The acquired company, GradFin, offers high-touch advisory services to individuals seeking assistance with their student debt. Financial terms of the deal, which closed on May 2, were not disclosed.
“GradFin combined the best of digital and human interaction to create a unique client experience,” Jamie Warder, head of digital at KeyCorp, said in a press release Monday announcing the deal.
The acquisition comes two months after KeyCorp CEO Chris Gorman told investors that further growth at KeyBank’s parent company would come from “targeted investments, investments in teammates, investments in digital, investments in analytics and the acquisition of niche businesses.”
Recent examples of such investments include the company’s
In 2019, the $181.2 billion-asset bank acquired Laurel Road’s student loan refinancing platform, which Cleveland-based Key has since expanded into a full-fledged digital bank for doctors and dentists.
GradFin, which is based in Philadelphia, provides access to financial advisors who help borrowers reduce their student loan debt through repayment, consolidation and refinancing. The 7-year-old company also assists borrowers with public service loan forgiveness programs.
GradFin CEO Chris Walters will continue to oversee the fintech’s team after the acquisition, KeyCorp said in the press release. That team includes debt counselors, public loan forgiveness specialists and business development personnel, a KeyCorp spokesperson said in an email.
The acquisition comes amid growing expectations that the Biden administration will soon announce large-scale forgiveness of federal student loan debt. President Biden pledged during the 2020 campaign to forgive up to $10,000 of student debt per borrower.
