Cleveland-based banking firm KeyBank has had a clear strategy for growth over the past several years: acquire key fintech firms to expand its digital footprint.
As of May 2022, KeyBank has taken its aggressive strategy for expansion in a new direction with the acquisition of GradFin. Similar to previous purchases, GradFin is reputed for its forward-thinking tech offerings. What’s different is that GradFin specializes in public service student loan forgiveness counseling.
According to a statement by KeyBank, the acquisition of GradFin is the company’s “next step in providing digital innovation at scale through strategic partnerships with fintechs.” The Philadelphia-based company, founded in 2015, has built a reputation for itself as one of the top names in online loan forgiveness counseling and currently boasts 60,000 clients.
If previous acquisitions are any indication, this latest purchase is likely to bring major results for KeyBank. For instance, the bank’s acquisition of healthcare industry-centered online bank Laurel Road has produced better returns than expected, Chief Executive Officer Chris Gorman reported in January. And with the previous acquisitions of standout tech firms AQN Strategies and XUP Payments in 2021, KeyBank appears to be well set up for integrating next-level tech into its offerings.