Small logo Subscribe to leading news on impact investing. Learn More
The Brief Originals Dealflow Signals The Impact Alpha Impact Voices Podcasts Agents of Impact Open
What's Next Capital on the Frontier Measure Better Investing in Racial Equity Beyond Trade-offs Impact en las Americas New Revivalists
Local and Inclusive Climate Finance Catalytic Capital Frontier Finance Best Practices Geographies
Slack Agent of Impact Calls Events Contribute
The Archive ImpactSpace The Accelerator Selection Tool Network Map
About Us FAQ Calendar Pricing and Payment Policy Privacy Policy Terms of Service Agreement Contact Us
Locavesting Entrepreneurship Gender Smart Return on Inclusion Good Jobs Creative economy Opportunity Zones Investing in place Housing New Schooled Well Being People on the Move Faith and investing Inclusive Fintech
Clean Energy Farmer Finance Soil Wealth Conservation Finance Financing Fish
Innovative Finance
Personal Finance Impact Management
Africa Asia Europe Latin America Middle East Oceania/Australia China Canada India United Kingdom United States
Subscribe Log In

Amalgamated Bank joins $26 million closing of Insikt social bond securitization

ImpactAlpha, November 12 – Insikt, propounded ‘in-seekt’, is a tech-enabled community development finance institution that makes small loans to working families in the U.S. through its lending platform Lendify.

The fintech firm packages up the loans the into securities, which it then issues as bonds to financial institutions, foundations and private investors. Its latest $26 million securitization attracted Amalgamated Bank, a B-corp-certified commercial bank that went public on the NASDAQ stock exchange in June.

The issuance marks Insikt’s fifth securitization this year, backed by 21,000 loans. INSIKT’s total securitization volume across 16 issuances reached $273 million.

Insikt launched Lendify in 2014 to serve America’s 66 million underbanked and unbanked and break their reliance on predatory and payday lending. The cloud-based lending platform uses a proprietary algorithm to offer loans of between $500 and $1500 with annual percentage rates of between 30% and 60% (pay loans can reach annual interest rates of up to 400%). The firm says that two-thirds of its repeat customers improve their credit scores an average of 312 points between their first and second loan.

“How they structure their securitization program gives us the confidence that our investment will make a meaningful difference in the communities that need it most,” said Amalgamated Bank CEO Keith Mestric, “while providing a healthy return for our shareholders – which is even more important now that we are a public company.”

You might also like...