Specializing in compliance solutions for automotive, RV, marine, and powersports lenders, Colleyville-based Lender Compliance Technologies (LCT), has raised $4.15 million in a Series A funding round to further the development of its technology solutions.
Dedicated to supporting automotive entrepreneurs, businesses, and investors with industry-specific resources in early stages, Automative Ventures played a large role in LCT’s funding. To support its mission, Automative Ventures created the Automotive Ventures Fund I, an inaugural venture that funds startups with a wide array of business models, ranging from B2B SaaS and data companies to marketplaces and hardware businesses.
A syndicate of software entrepreneurs and Driven Capital Partners also participated in the round, allowing LCT to “set a new standard” for solving lender compliance issues.
LCT’s first product: Refund Control
Based in Colleyville, LCT was founded in 2020 and is using industry based audit-ready solutions to serve the needs of lenders and ultimately create a forward-thinking roadmap. In April, LCT released its first product, Refund Control, which allows lenders to take control of the cancellation and refund process of finance and insurance products. The flagship product is currently in the pre-sales phase and is scheduled to roll out in the U.S. in a couple of weeks.
By giving lenders the power to protect themselves against operational errors that can ultimately be found by regulators to violate consumer protection laws, LCT believes they are “the right tech from the right team at the right time”
In fact, Glenn Munro, president of LCT and a 20+-year financial services industry veteran, believes that releasing Refund Control and raising capital is just the beginning of a series of tech-driven solutions to help lenders remain compliant across various aspects of their business.
“There’s never been a more important time for lenders to successfully manage and navigate the many consumer regulations they face,” Munro said in a statement. “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.”
Automotive Ventures: $1 billion in acquisitions
After two decades of automotive experience and more than $1 billion in acquisitions, Steve Greenfield started Automotive Ventures. Since 2014, he’s pursued a goal of enriching the industry, encouraging investment, and fueling the next wave of technological innovation.
“Banks, credit unions, and finance companies face increasingly stringent controls today,” Steve Greenfield, founder and CEO of Automotive Ventures said in a statement. “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.”
Get on the list.
Dallas Innovates, every day.
Sign up to keep your eye on what’s new and next in Dallas-Fort Worth, every day.