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.
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.
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