LENDING CLUB

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Related Headlines

01/19/2021Lending Club's Radius Bank deal approved
05/06/2020Lending Club has Q1 net loss of $48.1M
04/21/2020Lending Club sheds 460 employees
03/13/2020Lending Club CEO on podcast
02/19/2020Lending Club to acquire Radius Bank



Potential Match Found in deBanked UCC Filer list

Company NamePhone numberUCC Alias 1Alias 2Alias 3Alias 4Alias 5
Lending Club 888-596-3159 Lendingclub Corporation




Stories

Lending Club Sheds 460 Employees

April 21, 2020
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In response to changing economic conditions, Lending Club announced that it has put a plan in place that will reduce its workforce by 460 employees.

That comes in addition to temporary reduced salaries for the company’s top executives including CEO Scott Sanborn who agreed to a 30% cut in his base compensation.

The company’s stock closed $7.39 on Tuesday, up from its April 3rd all-time low of $6.85.

OnDeck, Lending Club Shares Battered By Market Turbulence

March 9, 2020
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The collateral damage of market panic led to all-time low share prices for online lending companies OnDeck and LendingClub on Monday. By noon, OnDeck was down 7.5% on the day at $2.55 (the low was $2.47) and LendingClub was down 5% at $9.62 (the low was $9.26).

Online lender Elevate also hit a new all-time low of $2.50.

Lending Club Originated $3.3B in Loans in Q3

November 5, 2019
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Scott SanbornLending Club originated $3.3B in loans in q3 and reported a minor net loss of $400,000. That loss was a $22.4M improvement over the same period last year, mainly due to an increase in “net revenue” and a decrease in class action and regulatory litigation expense. One of those class action lawsuits against them was dismissed on October 31.

Lending Club is the number one provider of personal loans in the country and is continuing to grow their marketshare, CEO Scott Sanborn said during the earnings call. One analyst asked if their continued lead on that could be due to the market’s declining emphasis on growth as a performance metric. Sanborn responded by saying that the competition had not let up at all on marketing and that direct mail marketing and competition is still at operating at an extremely high level.

Lending Club Still Logging Losses, But Not For Long?

August 9, 2019
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Scott SanbornLendingClub released its second quarter report this Tuesday.

Loan originations reached a new high of $3.1B, but the year-over-year growth rate for the quarter clocked in at only 11%, down from the 18% growth experienced the three straight previous quarters in a row. The company also generated a net loss of $10.6M. Beyond Q2 however, this appears to be in line with their plan for 2019, as they are forecasting to have a loss ranging from $23-38 million by year’s end, much better than the 2018 loss of $128.2M and 2017 loss of $154M.

“Since I took over as CEO three years ago, we have increased originations by 60% while tripling contribution dollars. We are leveraging our data, scale and marketplace model to execute with discipline and compound our competitive advantages,” LendingClub CEO Scott Sanborn asserted to investors in the earnings call. “Better use of data, increased automation and new communications approaches have increased our conversion rate, reduced our unit cost of operations and accelerated time to approval. For example, in Q2, 72 percent of our personal loan customers went from application to approval within 24 hours – that is up from 46 percent only a year ago.”

LendingClub’s recent decision to forward small business loan inquiries to Funding Circle and Opportunity Fund, did not come up. Funding Circle similarly did not elaborate on any developments relating to this partnership in their August 8th, 2019 H1 report.

Lending Club aimed its focus on the Select Plus Platform, a program that aims to make it easier for prospective investors to find borrowers who might otherwise be unseen due to their non-conformity to certain criteria, broadening the range of those who receive loans. “It really is addressing customers across the credit spectrum,” Sanborn told an investor when asked about Select Plus, “All of this fitting into the broader product-to-platform idea of just opening up our marketplace to other people who can serve the consumers that we have validated identity and income, and assessed credit worthiness, how else can we serve them not just through our own efforts but through the efforts of others.”

Lending Club Calls It Quits On Underwriting Small Business Loans

April 23, 2019
Article by:

Scott Sanborn, Lending Club CEO

The company is the latest fintech player to exit small business lending.

Lending Club will no longer be underwriting small business loans, according to Lending Club Head of Communication VP Anuj Nayar. The company will still accept applications for them, but will direct them instead to Opportunity Fund and Funding Circle in exchange for referral fees. Less established businesses, or those with lesser credit, will be sent to Opportunity Fund, while more established businesses with better credit will go to Funding Circle.

According to Nayar, there will be no layoffs. Some employees who had worked in small business underwriting will move elsewhere within Lending Club while others will become contractors for Opportunity Fund. Opportunity Fund is a non-profit with the mission of investing in small businesses that have been shut out of the financial mainstream. It is backed by major financial institutions including Bank of America, Goldman Sachs and the JP Morgan Chase and Knight Foundations. In fiscal year 2017, Opportunity Fund made over $92.5 million in loans to more than 2,900 small business owners.

“[These two partnerships] enables us to both deliver greater value to our applicants and capture a new revenue stream for Lending Club, while further simplifying our business and setting the stage for more partnerships and innovations for Club Members,”  said Lending Club CEO Scott Sanborn.

The new revenue stream Sanborn refers to is the referral fees Lending Club will get from its new funding partners when they fund loans sent to them from Lending Club. And Lending Club’s business will be streamlined as it jettisons small business lending backend operations. They will now focus exclusively on consumer loans, which has been the company’s primary business since it was founded in 2006.

Lending Club expanded into small business lending several years ago, but this component of its business never really took off, and was declining over the last few years. At the end of December 2016, Lending Club’s non-consumer loan originations (including small business loans) accounted for 10% of its business. In December 2017, it was 9%. And in the fourth quarter of 2018, it was 7%.

Nayar said that these new partnerships will allow Lending Club to focus even more on consumer lending. Headquartered in San Francisco, Lending Club has lent more than $44 billion to 2.5 million customers.

Acquisition Costs Compared for GreenSky, Square, PayPal, OnDeck, Lending Club, and Prosper

March 5, 2019
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GreenSky graphGreensky, a consumer lending company, wants investors to know how low its acquisition costs are relative to the competition. The chart above, which appeared in their year-end earnings report, showed how much lower their sales & marketing expense ratio is versus Square and PayPal.

deBanked examined three additional fintech lending companies and ranked them as follows:

Company Name 2018 Sales & Marketing Ratio 2017
GreenSky 5% 5%
PayPal 8% 9%
OnDeck 11% 15%
Square 12% 11%
Lending Club 39% 40%
Prosper Marketplace 76%* 72%

*indicates an estimate

The closeness between Square and OnDeck is notable in that Square markets its payment services first and then offers loans (and other products) as an add-on, while OnDeck only offers loans. Despite that, sales & marketing as a percentage of revenue are still virtually the same for each of them. Square is outspending OnDeck on marketing by more than 10:1, however, and is on pace to surpass OnDeck’s annual loan volume.

Prosper, meanwhile, is doing just as poorly as its wacky ratio looks. The company is losing tens of millions of dollars a year with no end in sight.

‘Peers’ Are Almost Gone From Lending Club’s Funding Mix

February 20, 2019
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Lending Club breakdownLong gone are the days of peer-to-peer lending.

On Tuesday, Lending Club, a pioneer in the peer-to-peer lending space, reported that only 6% of its Q4 originations came from individual self-managed accounts. Accounts professionally managed for individuals made up 16%, with the rest of the loans being funded by a combination of banks, institutions, and Lending Club itself.

Nearly 4 years ago, the ratio was flipped. Self-managed accounts made up 24% of originations in early 2015 and accounts professionally managed for individuals made up 51%.

Despite the changes, Lending Club still identified itself as a “marketplace connecting borrowers and investors” in its Q4 2018 earnings report. A review of the site revealed that it is still possible for individual investors to manually review unfunded loans on the platform and invest in them, though it prods investors to rely on Lending Club’s automated investing strategy instead. The implication for manual investors is obvious, that banks, institutions, automated investment algorithms, and Lending Club itself are more likely to fully fund the best borrowers before the individual has a chance to even see them on the platform.

According to the blog of LendItFintech co-founder Peter Renton, Lending Club is producing among the lowest returns of any platform in the field, with his own accounts generating from 1.57% a year to 4.35% a year.

Lending Club Hits Record for Originations

August 7, 2018
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Scott Sanborn, Lending Club CEOIn the second quarter of 2018, Lending Club originated a record high of $2.8 billion, up 31% from the same time last year. Net revenue also hit a record high of $177 million, up 27% year-over-year.

During today’s earning call, Lending Club CEO Scott Sanborn said that the company completed a successful securitization this quarter and Lending Club CFO Tom Casey said that that they expect several more by the end of the year. Both acknowledged that the company is still spending millions of dollars to resolve regulatory issues, but Sanborn said he expects that to come to a close by the end of the year. With regard to the record high in originations, Casey said that the company also had a higher percentage of A and B grade loans in the second quarter.       

Lending Club offers fixed rate business loans from $5,000 to $300,000 and personal loans of up to $40,000. The company also offers auto refinancing.

Founded in 2007, Lending Club was one of the first major peer-to-peer lenders. The company facilitates loans between individual borrowers and individual or institutional investors. Traditionally, individual investors in companies must be accredited investors. This means that the U.S. Securities and Exchange Commission requires the accredited investor to have a net worth of at least $1 million, excluding the value of one’s primary residence, or they must have income of at least $200,000 each year for the last two years, or $300,000 combined income if married.

Lending Club investors must also satisfy certain lesser financial requirements. In most states, excluding California, Lending Club investors must have an annual gross income of at least $70,000 and a net worth of at least $70,000 (excluding value of home, home furnishings, and automobile) or they must have a net worth of at least $250,000. (California requires the an investor’s annual gross income be $85,000).

Since investors are not accredited, every Lending Club loan, many of them to individuals, must be filed with the SEC so that investing in a Lending Club loan is like buying stock in a publicly traded company. Investors can buy fractions of loans in the form of notes as small as $25.

Lending Club is headquartered in San Francisco and went public on the New York Stock Exchange in 2014.

 

Threads on deBanked


08-19-2019

Major LinkedIn Group Fraud ... What To Do???...
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Found on DailyFunder:

08-19-2019

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