DALLAS – Lender Compliance Technologies (LCT), the company that specializes in compliance solutions for automotive, RV, marine, and powersports lenders, has raised $4.15 million in a Series A funding round, with Automotive Ventures. The round was led by a team of seasoned software entrepreneurs and joined by Automotive Ventures and Driven Capital Partners for the ongoing development of technology solutions to help lenders mitigate regulatory risks.
This announcement comes on the heels of the launch of LCT’s Refund Control™, a lender-controlled compliance solution for F&I product cancellations and refunds, and the close of Automotive Ventures Fund I, an inaugural venture fund created by Automotive Ventures to support early-stage automotive technology companies.
“Banks, credit unions, and finance companies face increasingly stringent controls today,” said Steve Greenfield, founder and CEO of Automotive Ventures. “Consumer F&I product cancellations and credits are tedious and if handled improperly, expose lenders to hefty fines and damaged reputations. Automotive Ventures, along with a syndicate of software entrepreneurs and Driven Capital Partners, invested in LCT because the company’s robust platform provides end-to-end services to simplify, automate, and streamline this process. With nearly 40 million F&I products purchased by consumers each year, the market is huge and the risks are significant. LCT helps mitigate these risks for lenders.”
Lender Compliance Technology’s flagship product, Refund Control, was introduced in April of this year and is currently in the pre-sales phase, with official U.S. rollout scheduled in just a few short weeks. Glenn Munro, President of LCT and a 20+-year financial services industry veteran, says this is just the beginning of technology-driven solutions to help lenders remain compliant across various aspects of their business.
“There has never been a more important time for lenders to successfully manage and navigate the many consumer regulations they face,” said Munro. “Vehicle industries are challenged in the wake of the pandemic and lending professionals need every available resource to mitigate risk. This funding from our trusted investment partners enables us to develop a full compliance roadmap and accompanying software solutions. Our ultimate goal is to help lenders provide their industry clients and vehicle consumers with an unparalleled level of service that meets regulatory requirements at every turn.”
Lender Compliance Technologies (LCT) is setting a new standard in compliance solutions for auto, RV, marine and powersports lenders. It brings together extensive industry experience in lending, recoveries and compliance, and SaaS development to create a compliance-driven technology solutions company. LCT focuses on serving the needs of lenders with audit-ready solutions based on industry practices and a forward-thinking roadmap. Its first product, Refund Control™, helps lenders take control of the cancellation and refund process of F&I products and protect against operational errors that can ultimately be found by regulators to violate consumer protection laws. With the regulatory landscape intensifying, LCT is the right tech from the right team at the right time. For more information, please explore https://www.lct1.com/.
About Automotive Ventures
Automotive Ventures was founded in 2014 by Steve Greenfield, an industry expert on mergers, acquisitions, strategy, and capital raises.
Created to provide the trusted resource Steve wished he had as an entrepreneur and investor, Automotive Ventures harnesses the knowledge and intuition that comes from Steve’s 20+ years of automotive experience with roles at Manheim, AutoTrader.com, CarLingo, and TrueCar; more than $1 billion in acquisitions; and negotiation of hundreds of automotive software and data agreements.
Automotive Ventures engages a team of industry experts as employees, advisors, and investors.
About Automotive Ventures Fund I
Automotive Ventures Fund I focuses on areas across automotive – and mobility more broadly – including the digitalization of dealerships, electrification, car connectivity, autonomy, and shared mobility. Additionally, it funds startups with a wide array of different business models, from B2B SaaS and data companies, to marketplaces and hardware businesses.
Automotive Ventures aims to invest in the very early stages of a company’s journey, most typically in the seed or pre-seed round, but occasionally its first investment may be in the Series A. Automotive Ventures anticipates that it will often be the first “institutional” investor that puts in money, with investments alongside angel investors and even “friends and family.”
SOURCE Automotive Ventures