BankLabs Launches Participate: Revolutionizing Loan Trading with Cloud-Native Technology and Substantial Fintech Investments
BankLabs, a leading innovation lab for banking technology, has recently launched a new spin-out company called Participate. This initiative is backed by substantial investments from FINTOP Capital and JAM FINTOP Banktech, two of the nation’s foremost fintech investment firms. The funding is aimed at democratizing loan trading across financial institutions of all sizes.
Participate is designed to minimize friction in the loan participation process through cloud-native technology and curated buy-side clubs. The platform automates the process of selling a portion of a new or existing loan, streamlining tasks such as principal and interest splitting, collaboration on balances, notifications to the buy-side, and more. This patented and fast-growing platform revolutionizes the loan trading process, making it more efficient and accessible for banks of varying sizes.
Matt Johnner, President of BankLabs and Participate, expressed his delight at partnering with FINTOP & JAM FINTOP, stating that this investment is more than just financial backing; it is the creation of a new organization focused on helping America’s lenders improve and manage liquidity, reduce concentration risk, and boost net income. JAM FINTOP’s involvement goes beyond financial resources, as they are essentially an R&D unit for the approximately 100 banks in their network. The FINTOP Capital team also brings impressive relationships beyond traditional banks, which will contribute greatly to escalating Participate’s reach and impact.
Mike Montgomery, CEO of BankLabs and Participate, shared their intent to foster an environment where the increase in participation loans would act as ‘backup liquidity’ for banks, thereby enabling quicker and more efficient balance sheet adjustments. This vision aligns with the struggles community banks face in balancing liquidity and managing their loan portfolios, making the timing ideal for a tool like Participate.
John Philpott, Partner at FINTOP Capital, provided further insights, noting that they see firsthand the challenges community banks face and believe that Participate is a critical solution. He emphasized that it is a privilege to work with professionals like Mike, Matt, and the entire BankLabs Participate team, and they are grateful to be partnering with them.
BankLabs has a history of innovation in the banking industry, previously achieving success with the creation, growth, and sale of ‘Construct’ to Abrigo, a leading fintech firm. Construct, a robust loan administration tool, was developed to cover all types of commercial and residential construction loans and borrower types. The acquisition by Abrigo expanded Abrigo’s award-winning loan origination solution, creating an end-to-end construction origination, management, and administration platform.
The launch of Participate marks a significant leap forward in the democratization of loan trading, providing equal opportunities for financial institutions of all sizes. With the backing of FINTOP Capital and JAM FINTOP Banktech, Participate is poised to revolutionize the loan trading process, making it more efficient and accessible for banks across the country.