BankLabs of Little Rock has launched Participate, a spinoff company designed to reduce friction in the loan participation process via cloud-native technology and curated buy-side clubs, the company announced Thursday.
The new venture received “significant investment” from FINTOP Capital and JAM FINTOP Banktech, both fintech venture capital firms. The partnership “endorses BankLabs’ mission to democratize loan trading for all financial institutions, irrespective of size,” Banklabs said in a news release.
The Participate platform automates the process of selling a portion of a new or existing loan. “Once a loan is closed, Participate automates the back-office workflow, including principal and interest splitting, collaboration on balances, notifications to the buy-side, variable interest rate management, secure document management and much more,” according to BankLabs.
“We are delighted to partner with FINTOP and JAM FINTOP,” Matt Johnner, BankLabs and Participate president, said in a statement. “This is more than an investment, 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.”
BankLabs is an innovation lab that works to create banking products that help community-oriented financial institutions succeed.
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