A year after becoming a bank, LendingClub is helping more people keep more of what they earn
SAN FRANCISCO, March 30, 2022 /PRNewswire/ — LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America’s leading digital marketplace bank, today announced that it has helped more than 4 million members since 2007 on their journey to financial health. The company reached this milestone just over a year after becoming a bank holding company operating a national bank.
“Every day our members come to us to improve their financial health and we help them leverage their money so they can earn more when they save and pay less when they borrow,” said Amber Carroll, Senior Vice President of Membership Marketing and Lifecycle at LendingClub. “Our members are some of the most profitable customers in retail banking, it works better for banks than for their customers and we are working to redefine banking so that our interests are aligned with theirs.”
LendingClub defines Members as individuals who have obtained a personal loan, auto refinance loan, patient and education finance loan, or consumer deposit account through the LendingClub platform. Importantly, this does not count people who simply gave LendingClub an email address, nor LendingClub platform investors, fintech partners, or business customers.
LendingClub loans support members across the credit spectrum, but its primary loan clients tend to be creditworthy (average FICO around 700) with relatively high income levels (average annual salary around $100,000). However, they make heavy use of revolving credit cards to manage their cash flow and the unforeseen events that have become more frequent during the pandemic. As a member shares,
“When my wife suddenly needed $11,000 dental work, I didn’t know how to finance it. I received an offer in the mail from LendingClub and within three days the incredibly simple, completely digital process was complete and my money was on its way! LendingClub was perfect.” — Ron, PA member
LendingClub’s target demographic is an illustration of the broader macro environment in which 48% of U.S. consumers earn more than $100,000 a year are now living paycheck to paycheck, as evidenced by a recent study by LendingClub and PYMNTS. Many Americans are carrying above-average levels of debt and are looking for other ways to improve their financial health, including through banking. LendingClub members seeking financial support from LendingClub generally fall into two main groups:
- People interested in low-cost credit and short payment terms to manage their spending
- Individuals interested in earning rewards while building a savings cushion to reduce their debt
LendingClub’s digital market bank leverages its unique credit and data expertise to help members lower their overall borrowing costs and earn better returns on their deposits so they can effectively manage their cash flow and finding savings opportunities – essential steps to help improve consumers’ financial health. This customer-centric experience is why 50% of members return to LendingClub for additional product within 5 years.
Every day, members express their appreciation,
“This is my third time using LendingClub’s great rates and loan plans to help with home repairs and debt consolidation. Their application and payment processes are quick and easy to use. I have saved so much time and money with this funding!” — Christine, member from Texas
Since its launch in 2007, LendingClub has been on a mission to empower its members on their path to financial health. After revolutionizing the way people get personal loans, in 2020 LendingClub announced plans to acquire Radius Bank to better serve members’ needs. A year after closing the acquisition, LendingClub has merged the marketplace model and traditional banking, enabling the growth and innovation of a fintech with the financial profile and resilience of a bank.
For more information on joining the Club, visit: www.Lendingclub.com.
LendingClub Corporation (NYSE: LC) is the parent company of LendingClub Bank, National Association, Member FDIC. LendingClub Bank is the leading digital marketplace bank in the United States, where members can access a wide range of financial products and services designed to help them pay less when they borrow and earn more when they save. Based on over 150 billion cells of data and counting $70 billion in lending, our artificial intelligence-powered credit decision and machine learning models are used throughout the customer lifecycle to expand seamless access to credit for our members, while generating adjusted returns compelling risk for our loan investors. Since 2007, 4 million members have joined the Club to help them achieve their financial goals. For more information about LendingClub, visit https://www.lendingclub.com.
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SOURCE LendingClub Corporation