LendingClub now has a complete year of operating as a digital bank following its acquisition of Radius Bank. LendingClub, once an online lender, is now looking to benefit from a broader trend of providing digital banking services, perhaps with new digital features.
At the beginning of 2021, LendingClub, in the thick of COVID, saw its shares bouncing around $10/share. Today LendingClub is trading at around $22/share thus showing the market’s approval of its decision to become a digital bank. While LendingClub is far below its 52 week high of over $49/share, it is well-positioned to compete in the digital banking market – one with only a few true competitors. While there are many Fintechs providing bank-like services, or neobanks, most are operating in partnership with other chartered banks. LendingClub is able to cut out this middle man relationship and can lower its operational costs – perhaps passing the savings over to its users.
While LendingClub may be in a good spot, it still competes with the likes of digital backs Marcus (part of Goldman), and Varo bank, plus a growing legion of digital asset platforms like Coinbase that offer many banking services alongside crypto services. So it all comes down to execution and the portfolio of services LendingClub pitches to consumers.
LendingClub will host its conference call at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on January 26th.
A live webcast of the call will be available at http://ir.lendingclub.com under the Filings & Financials menu in Quarterly Results.
To access the call dial 1-888-317-6003 or outside the U.S. 1-412-317-6061 with Conference ID 1727043 ten minutes prior to 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).