A look through LendingClub’s Q4 2020 earnings
- LendingClub’s latest earnings report revealed an originations increase of 56 percent which surpassed the high end of its guidance range.
- Last month, Lending Club officially repositioned itself as a marketplace bank through its acquisition of Radius Bank.
LendingClub’s Q4 earnings showed a 56 percent increase in origination volumes to $912 million, exceeding the high end of the fintech’s previously provided guidance range.
The release also depicted a 77 percent increase in related transaction fees and a reduction in expenses from the third quarter of 2020. Last month, LendingClub completed its acquisition of Radius Bank and officially launched itself as a marketplace bank. A marketplace bank uses APIs to offer customers homegrown and partner products through transaction integration and processing capabilities.
The deal marks the first acquisition of a bank by an online lender. Increasingly more fintechs have started pursuing national bank charters. Earlier this month Square announced its industrial bank Square Financial Services. Personal finance platform SoFi also announced its upcoming acquisition of Golden Pacific Bancorp.
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