As LendingClub Finally Rebrands to Happen Bank, Prosper Holds On to Legacy Peer-to-Peer Lending Model

LendingClub has finally rebranded to Happen Bank. Explaining the new name, company CEO Scott Sanborn said, “The Happen Bank brand more clearly reflects the role we play in consumers’ lives: helping people make things happen with products that are smart, transparent, and easy to use.”

The LendingClub name was a holdover from the company’s early days as a peer-to-peer loan marketplace, a business model it ditched for good at the end of 2020. From there, LendingClub shifted into banking by acquiring Radius, a fast-growing digital bank, and has been a bank ever since. In many ways, that marked the end of the peer-to-peer lending era, at least for what had once been one of fintech’s most recognizable names. The segment had enjoyed major popularity throughout the 2010s, but the original vision gradually gave way to more traditional lending and banking models.

Prosper Marketplace, LendingClub’s original rival, took a different path. It has continued to hold on to its original model, even as the peer-to-peer portion of the business has become a much smaller piece of the whole. Prosper originated $2.7 billion in consumer loans in 2025, up from $2.2 billion the year prior. It still has a peer-to-peer component, but that continues to fade further into the background each year. Only 5% of Prosper’s loans were funded by peers in 2025, down from 7% in 2024.

Still, the model persists. Individuals can still log in, browse consumer loans, and contribute small amounts toward them in hopes of earning a return while Prosper services the loans. Prosper is profitable too, which helps show that its business was not merely built on fintech hype. The company celebrated its 20-year anniversary just last year.

In that announcement, Prosper CEO David Kimball said, “Prosper was established 20 years ago by Chris Larsen and John Witchel as part of their quest to democratize consumer lending and create opportunities previously unavailable through traditional banking channels. As consumers’ needs have grown, we have grown alongside them. Today, we’ve evolved into a comprehensive financial platform, offering simple, trusted, and affordable solutions that help people transform their lives.”