LendingClub (LC) investor relations material

Strategic vision and business model

• Transitioned to a digital marketplace bank targeting the 'motivated middle'—consumers earning $50,000–$200,000, representing 32% of the U.S. population and nearly half of non-mortgage credit wallet.

• Strategy centers on acquiring customers through lending, deepening relationships, and driving engagement with innovative digital experiences and products.

• Proprietary technology platform and machine-learning underwriting enable rapid product innovation, high automation, and personalized experiences, blending fintech agility with bank stability.

• Embedded growth engine leverages high customer satisfaction, repeat borrowing, and cross-product engagement, with 50% of annual issuance from repeat borrowers and 88% of those coming directly.

• Marketplace-bank hybrid model allows optimization between balance sheet and marketplace sales, enhancing resilience and capital efficiency.

Product and market expansion

• Core personal loan business targets debt consolidation, offering rates 700 basis points below average credit cards, with customers seeing FICO improvements and significant savings.

• Auto refinance and major purchase finance (e.g., elective medical, dental, home improvement) are key growth verticals, leveraging underwriting and digital distribution.

• Recent acquisition of Mosaic’s technology and partnership with Wisetack accelerates entry into the $500B home improvement market, aiming to double loan originations to $18–22B over the medium term.

• Product innovation includes top-up loans, embedded point-of-sale financing, and plans to launch additional products in 2025.

• Expansion into B2B2C channels and new verticals is expected to drive $2–3B in major purchase finance and $1B in secured products growth.

Technology and underwriting advantage

• Nearly two decades of data and machine learning drive 40% lower delinquencies and 25% better recovery rates than competitors, with 2.4x more approvals.

• Over 60 production models and 3,000 custom attributes enable precise risk differentiation and rapid adaptation to macro changes.

• AI-powered fraud detection and smart collections platform deliver near-zero fraud and high recovery, supporting sustainable loan economics.

• Technology stack is fully owned, modular, and cloud-based, enabling fast integration of acquisitions and custom partner solutions.

• Recent tech acquisitions (Narmi, Tally, Cushion, Mosaic) have accelerated product development and platform extensibility.