LendingClub Adds Client-to-Club Sales to Its LCX Automated Lending Auction Platform
big step forward to improve the liquidity of the asset class
SAN FRANCISCO, May 25, 2022 /PRNewswire/ — LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America’s first digital market bank, today announced a major enhancement to its automated loan auction platform, LCX. Institutional investors can now sell LendingClub loans directly to each other on the platform, increasing the liquidity of this market-leading asset through an efficient digital marketplace.
LCX marks a digital revolution in investing in marketplaces. Prior to its introduction in 2019, investors used spreadsheets with millions of cells, multiple legal agreements, and other manual processes to purchase loans on LendingClub’s platform. LCX’s fully digital process allows LendingClub to achieve market clearing prices quickly and efficiently – it reduces settlement time from weeks to days, enables price discovery and allows LendingClub to better understand dynamics of the market.
Over the past three years, LendingClub has significantly expanded LCX’s capabilities from secondary market sales alone (selling loans held on LendingClub’s balance sheet); sales on the primary market (sale of newly issued loans to investors at dynamic prices); adding the ability to connect without an API (an essential feature for investors without large technology teams); to put entire loan portfolios on the dynamic pricing platform for our largest investors; and now enabling client-to-client sales (where investors can directly sell previously issued loans to each other, with less friction, cost and time).
“Unique to LendingClub, LCX is another demonstration of our leadership in technology and innovation,” said Valerie Kay, Chief Capital Officer at LendingClub. “Today, we are increasing the liquidity of this attractive asset with client-to-client sales. As LCX becomes more sophisticated, our understanding of investor behavior, preferences and price also increases. We expect LCX technology to will continue to expand and serve as the foundation of LendingClub’s entire multi-billion dollar investor market.”
Gustavo Binni of BTG Pactual, the largest investment bank Latin America added, “LendingClub has been a long-standing and valued partner for BTG Pactual and LCX is another step towards strengthening this partnership, where we can express our point of view in the consumer credit space. on the API behind LCX enables transparency and operational ease, which simplifies our purchasing process. There is nothing else like it on the market, so we are excited to participate and help shape the future of the loan industry in the market.
Throughout its 15-year history, LendingClub has strived to offer a range of unique product structures to broaden investor access to consumer credit, broaden distribution and improve liquidity for all investors. .
LendingClub Corporation (NYSE: LC) is the parent company of LendingClub Bank, National Association, Member FDIC. LendingClub Bank is the leading digital marketplace bank in the United States, where members can access a wide range of financial products and services designed to help them pay less when they borrow and earn more when they save. Based on over 150 billion cells of data and counting $70 billion in lending, our artificial intelligence-powered credit decision and machine learning models are used throughout the customer lifecycle to expand seamless access to credit for our members, while generating adjusted returns compelling risk for our loan investors. Since 2007, more than 4 million members have joined the Club to help them achieve their financial goals. For more information about LendingClub, visit https://www.lendingclub.com.
Safe Harbor Statement
Some of the above statements, including statements regarding the expansion, functionality and benefits of LCX and the liquidity of LendingClub loans, are “forward-looking statements”. The words “anticipate”, “believe”, “estimate”, “expect”, “intend”, “may”, “outlook”, “plan”, “predict”, “project”, “will ‘, ‘would’ and similar expressions may identify forward-looking statements, although not all forward-looking statements contain such identifying words. Factors that could cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the adoption of LCX by platform investors, and the factors set forth in the section entitled “Risk Factors of our last annual report. on Form 10-K and Quarterly Report on 10-Q, each as filed with the Securities and Exchange Commission, as well as in our subsequent filings with the Securities and Exchange Commission. We may not actually achieve the plans, intentions or expectations disclosed in any forward-looking statements, and you should not place undue reliance on any forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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SOURCE LendingClub Corporation