BankLabs’ Loan Participation Platform Secures Investment from FINTOP Capital & JAM FINTOP Banktech, and Launches New Spin-Out Company ‘Participate’
Little Rock, July 26, 2023 — BankLabs, an innovation lab for banking technology, announces its strategic spin-out and significant investment from FINTOP Capital & JAM FINTOP Banktech, the preeminent FinTech venture capital firms led by fintech and banking veterans and supported by America’s leading banks. This partnership endorses BankLabs’ mission to democratize loan trading for all financial institutions, irrespective of size.
Participate is built to reduce friction in the loan participation process through cloud-native technology and curated buy-side clubs. This transformational platform is rapidly expanding, already patented, and promises to change the dynamics of the banking landscape forever. Participate 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.
“We are delighted to partner with FINTOP & JAM FINTOP,” said Matt Johnner, President of BankLabs and Participate. “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. JAM FINTOP’s involvement goes well beyond financial resources; 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 as well. The infusion of their resources and strategic insights will vault Participate to new heights.”
Mike Montgomery, CEO of BankLabs and Participate shared, “we intend to create an environment where increasing the amount of participation loans creates a form of ‘backup liquidity’ that strengthens a bank’s ability to make necessary or strategic balance sheet adjustments more quickly and efficiently.”
“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,” adds John Philpott, Partner at FINTOP Capital. It is a privilege to be able to work with professionals like Mike, Matt, and the entire BankLabs Participate team, and we are grateful to be partnering with them.”
For more information, please visit ParticipateLoan.com.
BankLabs is an innovation lab committed to redefining banking products for the future to help community oriented financial institutions succeed. With its groundbreaking Participate platform, BankLabs is at the forefront of transforming the loan trading process, reducing friction, and democratizing loan trading for financial institutions of all sizes. The spin-out of Participate follows the successful creation, growth and sale of Construct to Abrigo, a leading financial technology company with over 2,400 financial institutions as clients. Construct is the #1 construction loan automation and payments product in the country. Follow BankLabs for more innovations to come.
About FINTOP Capital FINTOP Capital is a venture capital firm focused on early-stage FinTech companies. With over $700 million in committed capital across five funds, FINTOP brings decades of FinTech founding and operating experience to the boardroom, partnering with innovative entrepreneurs to push the frontiers of the financial services sector. For more information, visit fintopcapital.com.
About JAM FINTOP
JAM FINTOP is a joint venture between JAM Special Opportunity Ventures and FINTOP Capital. The partnership brings together bank experts and seasoned fintech entrepreneurs to invest in companies changing the way financial institutions and their customers move, track, and interact with money. For more information, visit https://www.jamfintop.com.
Matt Johnner, President Participate & BankLabs
JAM FINTOP Contact
Brittani Roberts, Principal FINTOP Capital