LendingClub (NYSE:LC) says its auto lending vertical, launched in 2016, now covers 94% of the US population.
LendingClub was initially launched as a peer-to-peer consumer lender. Over time, it has morphed from a marketplace lending platform to a fully chartered digital bank. Adding new verticals and features, while aggressively promoting its digital banking platform, are key to its growth over time.
Today, LendingClub says that auto refinance loans are now available in 40 states with borrowers saving, on average, $4,000 over the life of the loan.
According to LendingClub, auto loans represent the fourth-highest share of U.S. household debt, after mortgage debt, home equity line of credit, and student loan debt. US citizens owe more than $1 trillion in aggregate auto loans – hence the opportunity for the digital bank.
Additionally, nearly two-thirds of LendingClub’s users currently hold an auto loan and it is typically the second-highest monthly debt outside of housing costs. LendingClub states that its auto loans are on average 5% lower than a consumers previous loan.
Todd Denbo, SVP of Auto at LendingClub Bank, commented:
“We see auto refinance loans as an enormous opportunity for our 3.8 million members and for LendingClub. Who would not want to save thousands for just a few minutes’ work? Now that we’ve transformed the process for refinancing an auto loan and can sell loans through our marketplace as well as hold loans on our balance sheet, we’re scaling the product. Auto is a key step in our vision to create a holistic customer experience that seamlessly integrates saving opportunities for our members across our product offerings.”