LENDINGCLUB

Renaud Laplanche launched LendingClub in 2006 on Facebook — yes, as a Facebook app. The idea was radical: cut banks out of lending entirely by connecting borrowers directly with individual investors willing to fund their loans.

The interest rate arbitrage was real — borrowers paid less than credit card rates, investors earned more than savings accounts. LendingClub became the first peer-to-peer lender to register with the SEC and went public in 2014 in what was then the biggest tech IPO of the year.

Digital marketplace bank connecting borrowers with investors. Originally a pure peer-to-peer lending platform — borrowers got lower rates than banks, investors got higher yields than savings accounts.

After acquiring Radius Bank in 2021, LendingClub became a full digital bank, using deposits to fund loans directly. Revenue comes from loan origination fees, interest income, and servicing fees.

Personal Loans (up to $40,000 for debt consolidation, home improvement, medical), Business Loans, Auto Refinancing, LendingClub High-Yield Savings (competitive APY), Checking Accounts, and the LendingClub Rewards Checking debit card. The personal loan product remains the core — fast approval, competitive rates, no branch visits required.

Becoming a bank. The 2021 acquisition of Radius Bank transformed LendingClub from a marketplace into a digital bank — now it can hold deposits and fund loans directly, dramatically improving economics.

The bank charter gives it a structural cost advantage over pure marketplace competitors. Cross-selling checking accounts, savings, and loans to existing borrowers drives growth.

Regulatory complexity nearly killed LendingClub multiple times. In 2016, CEO Laplanche was forced to resign after an internal investigation found that $22 million in loans were sold to an investor that didn't meet its criteria, and that Laplanche had an undisclosed interest in a fund that was investing in LendingClub loans.

The stock dropped 50% in a week. Rebuilding trust with investors, regulators, and the public took years.

Foundation Capital, Norwest Venture Partners, Canaan Partners, Google, and Union Square Ventures were among LendingClub's earliest and largest backers.