In most cases, when a fintech startup announces that a new investor has provided the company with funding, the investor is an equity firm or some other private investor.
Lender Price, a mortgage and consumer digital lending technology platform provider, is going about things a little differently.
The company’s lead investor is none other than Kevin Costner (yes, that one), and now, the company has a new investor, a prominent depository institution.
Yes, a bank is investing in a lending startup.
Lender Price announced Thursday that Regions Bank is making an equity investment in the company.
As part of the agreement, Regions Bank and Lender Price will also establish a working relationship wherein the fintech company will aid Regions with its digital lending process.
“Regions, together with Lender Price, will focus on streamlining Regions’ digital processes and simplifying interactions between bankers, borrowers and the bank,” the companies said in a release. “For consumers, the benefits will include fewer information requests, integration of additional data sources for approvals and confirmations, and quicker responses, all of which will help simplify the lending process.”
The investment is the first secured by Jerry Halbrook, who took over as Lender Price’s CEO last year. When the company named Halbrook CEO, it tasked him with securing funding to power the company’s growth.
“We are excited about our strategic collaboration with Regions Bank and the confidence displayed in our company and our technology products as a critical component to its digital lending experience,” Halbrook said of the deal.
For Regions Bank, the deal has dual benefits, helping improve its digital lending platform and helping Lender Price grow.
“We have made numerous improvements in the last year to make the customer experience easier – from redesigning our digital applications, to capturing signatures electronically,” said Logan Pichel, head of Regions Enterprise Operations. “This investment in Lender Price and our working agreement provides important growth capital for Lender Price, aligns our mutual interests in digital transformation and continues to move us toward the goal of making banking easier for our customers.”
Financial terms of the deal were not disclosed.