Exclusive Joint Venture Enables Banks and Credit Unions to Attract and Retain Generation Z Borrowers
CampusDoor, one of the nation’s largest third-party, private student loan origination platforms, announced an exclusive joint venture with Sparrow to expand banks’ and credit unions’ competitive advantage in capturing and retaining Generation Z borrowers.
“This exciting venture will further help lenders provide a ‘wow experience’ to every student applicant”
Founded by Gen Zers to address the frustrations they experienced when taking out loans, Sparrow is a digital search engine that makes it easy for students to find educational financing. Now Sparrow and CampusDoor are jointly offering a proprietary solution to help lenders bring the same ease and transparency to their prospects. The customized solution, focused only on each lender’s own products, is available as an optional front end to CampusDoor’s platform.
Latest Fintech News: FinTech Automation Selects ForwardAI to Provide Seamless Access to Accounting Data for Financial Institutions
“This exciting venture will further help lenders provide a ‘wow experience’ to every student applicant,” said Sara Parrish, President, CampusDoor. “We searched high and low to find a partner who could deliver the ‘sizzle’ that aligns with the expectations of today’s borrowers. We are glad to have identified these qualities in Sparrow.”
Since 1995, CampusDoor has facilitated more than $30 billion in student loans. The company’s end-to-end solution manages the entire process—from origination to disbursement—on behalf of hundreds of lending and institutional clients. The white-label platform supports a fast, easy laptop or mobile loan application powered by a robust origination engine that instantly customizes loan terms and requirements according to each borrower’s financial scenario. On-staff underwriters and a call center ensure a human, supportive experience. Non-bank mortgage lenders have also signed on for CampusDoor services like Student-Loan-in-a-Box™—which allows them to offer private student loan refinancing with a ready secondary market.
Latest Fintech News: Dragonfly Financial Technologies Launches FinTech Integration Center
Using the Sparrow/CampusDoor co-solution, banks and credit unions can quickly guide borrowers through an application—explaining their options while anticipating and answering their questions with tips and FAQs. The solution auto-populates information, in a logical sequence, so users never have to leave the platform to gain insights from elsewhere. These include details on their future payment schedules so that students understand the long-term impact of their decisions. The goal is to win applicants’ trust, leading to stickier relationships with them.
“As a Gen Z founder, I know firsthand the pain points that many of us had to overcome with getting through the student loan process,” said Harrison Hochman, CEO of Sparrow. “We are thrilled to find a partner in CampusDoor, who shares our commitment to making educational financing more accessible and understandable. Working together, we hope to empower more students to gain the resources they need to fulfill their dreams.”
Latest Fintech News: Questis Introduces, Communities: A Members-Only Financial Support Network
[To share your insights with us, please write to sghosh@martechseries.com]
