LendingClub (NYSE: LC) has reportedly surpassed $3 billion in loans sold via its structured certificates program.
LendingClub Corporation, the parent company of LendingClub Bank, which claims to be one of America’s leading digital marketplace banks, recently announced that it has surpassed $3 billion in loans “sold through its Structured LendingClub Loan Certificates program, which launched in April 2023.”
LendingClub Corporation is the parent unit of LendingClub Bank, National Association, Member FDIC.
As covered, LendingClub Bank operates a digital marketplace bank in the U.S.
Scott Sanborn, CEO of LendingClub said:
“Our structured certificates program is gaining strong momentum among our loan investors because they recognize the value of consumer credit as an asset class, the quality of our underwriting, and our streamlined financing solutions. The success of this program, which is unique to us, is another indicator of our status as a provider of choice in this asset class.”
LendingClub’s structured certificates program is “a two-tranche private securitization in which LendingClub retains the senior note and sells the residual certificate on a pool of loans to a marketplace investor at a predetermined price, effectively providing built-in financing.”
This program, enabled by LendingClub’s unique marketplace bank model, “benefits both marketplace investors and the bank.”
Marketplace investors earn compelling risk-adjusted levered returns “with low-friction and low-cost financing on a liquid security, and LendingClub earns an attractive yield with remote credit risk.”
Sanborn said:
“As the industry leader, we have a track record of substantially lower delinquencies compared to our competitive set, which is key to delivering strong returns for ourselves and our marketplace investors. That outperformance has resulted in existing partners renewing their commitments, and new investors coming to the LendingClub platform.”
Throughout its long history, LendingClub has “offered a range of industry-first, unique product structures to expand investor access to consumer credit, broaden distribution, and improve liquidity for all investors.”
The structured certificates program is just the latest example of that leading innovation.
As covered, LendingClub Bank is where members can “access a broad range of financial products and services designed to help them pay less when borrowing and earn more when saving.”
Based on more than 150 billion cells of data and over $90 billion in loans, their advanced credit decisioning and machine-learning models “are used across the customer lifecycle to expand seamless access to credit for our members, while generating compelling risk-adjusted returns for our loan investors.”
Since 2007, more than 4.9 million members “have joined the Club to help reach their financial goals.”
