LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, has announced a “major enhancement” to its automated loan auction platform, LCX. LendingClub states that institutions may now trade directly thus increasing liquidity for loans.
LendingClub describes LCX as a “digital revolution in marketplace investing.”
Before LCX was launched several years ago, transactions were mostly manual. LendingClub states that price discovery is improved and settlement now takes days instead of weeks.
LendingClub has expanded LCX’s capabilities from secondary market sales to primary market sales (selling newly issued loans to investors at dynamic prices) to adding the ability to connect without an API.
Whole loan portfolios are available on the platform for LendingClub’s largest investors.
Valerie Kay, Chief Capital Officer at LendingClub, commented on the LCX enhancement:
“Unique to LendingClub, LCX is yet another demonstration of our technology and innovation leadership. Today we are increasing liquidity for this attractive asset with client-to-client sales. As LCX gets more sophisticated, so does our insight into investor behavior, preference and price. We expect that LCX technology will continue to extend and serve as the foundation of LendingClub’s entire multi-billion-dollar investor marketplace.”
Gustavo Binnie of BTG Pactual, the largest investment bank in Latin America described LendingClub as a longstanding and valuable partner to his firm calling LCX a new step towards strengthening this partnership.
“The API-driven technology behind LCX allows for transparency and operational ease, which simplifies our buying process. There’s nothing else like this in the market, so we’re excited to take part and help shape the future for the marketplace lending industry.”