Lending Club announced on Thursday that Titan Bank and Congressional Bank, both of which are community banks, have begun loan purchasing through the Lending Club platform.
“Lending Club brings a low cost operating model to consumer lending,” Titan Bank Director Jonathan Morris said. “Banks, on the other hand, have a low cost of funds and deep roots in local communities. Our alliance with Lending Club truly combines the best of both worlds to bring down the cost of credit for our customers. This is the future of bank lending.”
Lending Club uses technology to streamline the acquisition, underwriting and servicing process and to allow it to operate at lower costs than branch-based banks.
“Lending Club has demonstrated that it attracts creditworthy customers while efficiently pricing, underwriting and servicing loans,” Congressional Bank President Jeff Lipson said. “We are pleased to partner with a proven leader.”
Since its launch in 2007, Lending Club has originated nearly $2 billion in loans, with $148 million in May alone. The company saw 23 consecutive quarters of positive returns.
“This is another step in our quest to make credit more affordable for consumers,” Lending Club CEO Renaud Laplanche said. “The combination of our low operating cost and banks’ low cost of funds helps create a significantly lower cost structure for providing personal loans, which enables consumers to either pay off or avoid expensive credit cards.”