It is not just Bitcoin that is hitting new highs. LendingClub (NYSE:LC), once a marketplace lending platform and now a nationally chartered bank, has hit another 52 week high. While Bitcoin is up about 4.28% for the day, LendingClub is doing better showing an increase of 4.52% (at current prices before market close).
Just last week, CI reported that LendingClub was trading around $34 a share for the first time in a very long time. Today, LendingClub has traded over $36/share setting a new top for the year. While the over all market has had a good day so far helping LendingClub out the increase may be due to earnings expectations rising as LendingClub will share Q3 performance next week following a beat last quarter.
While coverage is limited, consensus EPS for the quarter is pegged at $0.11 and moving higher during next year.
Investors will be interested in both top and bottom-line numbers but more interesting will be how LendingClub Bank is evolving. Digital banking is a hot sector of Fintech. LendingClub is one of the few pure Fintechs to actually have a national charter. The fact that several aspiring digital banks have decided to bail on pursuing a bank charter means they will be relegated to neo-banking status – providing services in partnership with others. This may give LendingClub a competitive advantage with things like deposits and lending. The Biden Administration has emerged as less innovation-friendly regarding the financial services sector and fewer Fintechs may be able to become real banks during the next couple of years thus making it easier for LendingClub to stand out from the pack.