Investment secured by BankLabs’ loan platform, new spin-out ‘Participate’ introduced

Established as a vanguard in FinTech innovation, BankLabs has announced the launch of its new spin-out company, ‘Participate’.

This new initiative is backed by substantial investments from both FINTOP Capital and JAM FINTOP Banktech, signifying a leap forward in the democratisation of loan trading amongst financial institutions of varying sizes.

The investment for the launch of ‘Participate’ has been acquired from venture capital firms, FINTOP Capital & JAM FINTOP Banktech. These renowned FinTech firms, led by seasoned banking veterans and supported by some of America’s foremost banks, have endorsed BankLabs’ mission to provide equal opportunities in loan trading for all financial institutions, regardless of their size.

Designed to minimise friction in the loan participation process, ‘Participate’ leverages cutting-edge, cloud-native technology and curated buy-side clubs. This patented and fast-growing platform revolutionises the loan trading process by automating the sale of portions of new or existing loans. Once a loan is finalised, the platform also manages the back-office workflow, including principal and interest splitting, balance collaboration, notifications to buy-side, variable interest rate management, secure document handling, and much more.

BankLabs and Participate’s President, Matt Johnner, voiced his delight at partnering with FINTOP & JAM FINTOP, stating, “This is more than an investment, it is the creation of a new organisation focused on helping America’s lenders improve and manage liquidity, reduce concentration risk and boost net income. JAM FINTOP’s involvement goes well beyond financial resources; they are essentially an R&D unit for the approximately 100 banks in their network.”

He further added that the FINTOP Capital team’s extensive relationships outside traditional banks would contribute greatly to escalating Participate’s reach and impact. Additionally, Mike Montgomery, the CEO of BankLabs and Participate, also 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.

John Philpott, Partner at FINTOP Capital, provided further insights, “We see first-hand the struggles of community banks to balance liquidity and easily manage their loan portfolios, and the timing could not be better for a tool like Participate.”

BankLabs previously achieved success with the creation, growth and sale of ‘Construct’ to Abrigo, a leading FinTech firm, which boasts over 2,400 financial institutions as clients.

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