Member Exclusive, New banks

With OCC approval of Radius Bank, LendingClub is one step closer to becoming a marketplace bank

  • LendingClub’s merger with Radius Bank received conditional approval by the OCC.
  • The approval marks the latest stage in the acquisition which will transform LendingClub into a marketplace bank.
close

Email a Friend

With OCC approval of Radius Bank, LendingClub is one step closer to becoming a marketplace bank

Last week, the Office of the Comptroller of the Currency approved LendingClub’s merger with Radius Bank. The lender awaits pending confirmation from the Federal Reserve to receive bank holding validation. Once approved, Radius Bank will be launched as a national bank and renamed as LendingClub Bank.

The combined Radius and LendingClub entity is being positioned as a “marketplace bank”. 

A marketplace bank “pursu[es] a platform strategy by attracting both buyers and sellers and providing transaction integration and processing capabilities,” according to bank analyst, Ron Shevlin, writing in Forbes. Radius Bank’s APIs and integrations will enable LendingClub to function as a “multi-line platform.” 

In February of last year, LendingClub announced its agreement to purchase Radius Bank for $185 million in efforts to diversify its revenue channels and to create a permanent avenue for loan funding. The deal has created waves in the financial services industry by stamping LendingClub with the distinction of being the first online lender to acquire a bank. 


This content is available exclusively to Tearsheet Outlier members.

Tearsheet Outlier information and signup Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — $59/mo Already an Outlier member? Sign in to your account

0 comments on “With OCC approval of Radius Bank, LendingClub is one step closer to becoming a marketplace bank”

Member Exclusive, New banks

Banking Briefing: Will WFH become a thing of the past?

  • Banks are pushing to get employees back in the office – but what will that do for their efforts to attract tech talent?
  • Meanwhile, gender inequality is alive and well in the banking industry. Here’s what one bank is doing to try and solve that.
Rivka Abramson | September 12, 2022
New banks

Are neobanks still considered disruptors?

  • Neobanks include thousands of companies seeking to disrupt banks across different customer segments and products.
  • As the digital transformation unfolds throughout the financial services industry, there will be a role for all types of service providers, including brick-and-mortar institutions.
Lindi Miti | September 02, 2022
New banks

Timberland Bank offers a savings program that pays customers to learn about finances

  • Integrations don’t have to be a painful, dragged out process if the right people are involved.
  • Paying people for learning about their finances can improve financial wellness and customer engagement.
Rabab Ahsan | September 01, 2022
Member Exclusive, New banks

Banking Briefing: All about branches

  • In a world of Web2s, Web3s, and Web-what-have-yous, a bank’s physical presence can almost feel passé.
  • But despite their decline in numbers, branches still very much play a role in banks’ success – from improving accessibility to getting in front of more consumers’ eyes.
Rivka Abramson | August 30, 2022
Member Exclusive, New banks

Banking Briefing: Offering personalized banking in an inflationary environment

  • As the financial situation takes on darker hues for consumers, personalization takes on a whole new dimension.
  • Here's what one neobank is doing to offer personalized services when times are tough.
Rivka Abramson | August 15, 2022
More Articles