The Santander Group’s fintech venture capital fund, Santander InnoVentures, is expanding funding for the cloud-based digital lending platform Roostify, which was designed to enable borrowers to complete mobile eMortgage closings. Santander first invested in the company in February 2018 and this is its second investment, according to a press release.
Founded in 2012, Roostify’s integrated digital lending platform is designed to accelerate the home loan experience by connecting customers and lenders in a way intended to improve speed, eliminate paper and simplify the closing process to reduce costs.
The company’s monthly loan volume has more than doubled over the last 12 months to nearly $20 billion a month as it supports leading global banks with their digital transformation journey, the release states. To date, customers have shared that the platform has driven a reduction in banks’ mortgage lending process time by an average of 20 percent.
“Digital transformation is a key strategic priority for banks worldwide, and industry-leading lenders are focused on delivering the best customer experience while managing costs,” Roostify CEO and Co-Founder Rajesh Bhat said in the release. “The Roostify lending platform enables lenders to realize up to 300 percent growth in loan applications and a significant reduction origination costs. The future is frictionless, everyone benefits when you optimize the lending process.”
The investment comes at an interesting time for the mortgage lending market, as borrower costs near rock bottom in many global markets, boosting home buying demand and spurring competition between lenders, according to the release.
“We’re excited to continue supporting Roostify in their next stage of growth as they forge ahead with their multinational and product expansion strategy,” Santandar InnoVentures Partner and Head of Investments Manuel Silva MartĂnez said. “The company has seen impressive growth since we originally invested in them last year, and the European mortgage lending market is ripe for the type of machine learning tools that Roostify offers.”