LendingClub (NYSE: LC) has announced the launch of LevelUp Checking, the latest in its growing set of digital-first financial solutions. LendingClub is a chartered digital banks that started its existence as an online lender. Credit continues to make up an important part of its operations.
LevelUp Checking is designed to reward LendingClub members “for making smart financial decisions and using money they have rather than money they borrow.”
Members will have the opportunity to “receive 1% unlimited cash back1 when they use their LevelUp Checking debit card for gas, grocery, and pharmacy purchases.”
What’s more, if they have a LendingClub personal loan, they will have the opportunity to “get 2% of their monthly payment in cash back for making on-time loan payments from their LevelUp Checking account – demonstrating that LendingClub products deliver even more value when used together.”
Additional features include:
- 1.00% APY on balances with $2,500 or more3
- No account fees
- No minimum balance requirements
- Unlimited ATM rebates
- Early paycheck access with direct deposit
- Free transfers
Mark Elliot, LendingClub’s Chief Customer Officer
“LevelUp Checking delivers cash back for essential purchases like gas and groceries while stacking on additional cash back for our borrowers who make on-time payments to their LendingClub personal loan. By offering rewards consumers typically seek by using a credit card, we’re fundamentally changing how our members spend – rewarding them for using money they have instead of money they borrow, and recognizing their smart money moves.”
A recent LendingClub survey found that “31% of consumers consider rewards or cash back as their top priority when choosing a credit card versus 29% who cite interest rates as their top priority.”
At the same time, because of higher living costs, “42% cite food and groceries as their largest category of increased credit card spending.”
Taken together, providing cash back rewards “for essential purchases that consumers make most often makes sense.”
Elliot said:
“Our emphasis on rewards is intentional. We fundamentally believe that our members should be rewarded for making smart everyday financial choices, and we’re building that idea into everything we do. That’s why LevelUp Checking members have the opportunity to earn 1% cash back when they use their debit card instead of credit, and why LevelUp Savings members earn a higher rate when they deposit at least $250 per month to their account. And we compound that value when members use multiple products together – rewarding our personal loans borrowers with the opportunity to earn 2% cash back for on-time loan payments made with their LevelUp Checking account.”
LevelUp Checking is only available to “current LendingClub members, who unlock these cash back benefits when they enroll in direct deposit.””
People can become a member by “taking out a LendingClub personal loan, opening a LevelUp Savings account, or a Certificate of Deposit (CD).”
Once they become a member, they’ll also gain “access to LendingClub’s highly rated mobile app and useful free tools like DebtIQ, which helps members monitor and manage their credit.”
As covered, LendingClub Corporation is the “parent company and operator of LendingClub Bank, National Association, Member FDIC.”
LendingClub Bank is the digital marketplace bank in the U.S., where members can “access a range of financial products and services designed to help them pay less when borrowing and earn more when saving.”
Based on hundreds of billions of cells of data and over $100 billion in loans, our advanced credit decisioning and machine-learning models “are used across the customer lifecycle to expand access to credit for members, while generating risk-adjusted returns for our loan investors.”
Since 2007, more than 5 million members have “joined the Club to help reach their financial goals.”
Shares of LendingClub have struggled to catch a bid this year even while markets have risen. The shares started the year at over $17, today they closed at around $11. While the digital bank continues to add incremental services it has yet to make a big announcement that impresses Wall Street.
