LendingClub Bank

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LendingClub Bank
TypeSubsidiary
Founded1987 (as First Trade Union Bank)
2014 (rebranded as Radius Bank)
2021 (rebranded as LendingClub Bank)
Headquarters
Lehi, Utah
Area served
United States
ProductsConsumer banking, corporate banking
ParentLendingClub
Websitebank.lendingclub.com

LendingClub Bank (formerly Radius Bank and First Trade Union Bank[1]) is an online-focused community bank headquartered in Lehi, Utah.[2] LendingClub Bank is a member of the FDIC and an Equal Housing Lender as well as a member of the NYCE SUM ATM network.[3][4]

History[]

LendingClub Bank was founded in 1987 as First Trade Union Bank by the carpenters union in Massachusetts, using pension funds.[1][5][6] The bank, however, struggled during the Subprime mortgage crisis, when it invested heavily in commercial real estate. In 2014, it was renamed Radius Bank.[7]

In June 2016, private investors acquired approximately 95% of Radius Bancorp in response to Dodd Frank regulations.[1][8][9][10] In February 2020 the non-bank consumer lender LendingClub announced that it had agreed to buy Radius for $185 million in cash and stock.[11] The deal, which LendingClub CEO Scott Sanborn said he expects will take 12 to 15 months to get regulatory approval, would be the first time since the 2008 financial crisis that a U.S. "fintech" lender buys a regulated bank.[12] In 2021, it was renamed LendingClub Bank.[13]

Business model[]

Consumer banking[]

LendingClub Bank formerly had one physical branch located in Boston when it was operating as Radius Bank.[14] Customers have access to online banking and mobile apps available for iOS and Android devices and offers free ATM reimbursements worldwide.[15][16][17][18][4][19]

Partnerships[]

The bank launched its first fintech partnership with LevelUp in 2013.[20][21] This was followed by a partnership with Prosper to provide personal loans in 2015.[22][23][24]

Radius Bank launched another fintech partnership in July 2015 with Aspiration.[25][26]

Commercial banking[]

LendingClub Bank provides depository services and financing to small and middle market businesses. The bank has been a Small Business Administration (SBA) Lender since 2009, primarily focused on lending in the northeast region of the U.S.[27][28] In May 2016, the bank expanded its SBA lending program nationally with the establishment of a new government-guaranteed lending team.[27] In December 2016, the bank acquired the equipment financing division of NewStar Financial.[29][30][31][32]

API Banking[]

On 29 October 2020, the bank has progressed its partnership with the Treasury Prime application programming interface (API) with the roll-out of its Business API Banking Software and sandbox testing technology.[33][34]

References[]

  1. ^ a b c Fernandes, Deirdre (4 November 2014). "Union's bank is set to go public". The Boston Globe. Retrieved 6 November 2017.
  2. ^ "Contact Us | Save with LendingClub". www.lendingclub.com. Retrieved 2021-10-06.
  3. ^ "ATM Locator". Nyceinfomanager.com. Retrieved 2017-09-26.
  4. ^ a b "FAQs". Radiusbank.com. Retrieved 2017-09-26.
  5. ^ "About Us - Radius Bank". Radiusbank.com. Retrieved 2017-09-26.
  6. ^ "InstitutionHistory". Ffiec.gov. Retrieved 2017-09-26.
  7. ^ Engage121 (2014-09-26). "First Trade Union Bank to Become "Radius Bank"". GlobeNewswire News Room. Retrieved 2021-10-04.
  8. ^ "Radius Bank Promises New Growth After Sale – LaborPress". laborpress.org. Retrieved 2017-09-26.
  9. ^ "BayBoston - A Financial Services Private Equity Firm". BayBoston - A Financial Services Private Equity Firm. Retrieved 2017-09-26.
  10. ^ "Radius Bank Announces Closing of Transaction With Investor Group". Marketwired.
  11. ^ "LendingClub to acquire Radius Bank for $185 million". Reuters. 2020-02-19. Retrieved 2020-03-02.
  12. ^ Son, Hugh (2020-02-18). "LendingClub buys Radius Bank for $185 million in first fintech takeover of a regulated US bank". CNBC. Retrieved 2020-04-23.
  13. ^ "With OCC approval of Radius Bank, LendingClub is one step closer to becoming a marketplace bank – Tearsheet". tearsheet.co. Retrieved 2021-10-04.
  14. ^ "How One Community Bank Closed Its Branches And Went Fully Digital". The Financial Brand. 26 July 2016. Retrieved 6 November 2017.
  15. ^ "Radius Bank Overhauls Its Digital Banking Platforms". American Banker. Retrieved 2017-09-26.
  16. ^ Bank, Radius (2017-04-21), Radius Mobile, Radius Bank, retrieved 2017-09-26
  17. ^ "Radius Mobile on the App Store". App Store. Retrieved 2017-09-26.
  18. ^ "Radius Bank Review: Checking, Savings & CDs - NerdWallet". NerdWallet.com. 2017-06-01. Retrieved 2017-09-26.
  19. ^ "Radius Bank Hybrid Checking Account - The New Standard". Cashmoneylife.com. Retrieved 2017-09-26.
  20. ^ "How Radius Bank Closed Its Branches And Went Fully Digital". The Financial Brand. 2016-07-26. Retrieved 2017-09-26.
  21. ^ "Inside Radius Bank's virtual banking strategy". Tearsheet.co. Retrieved 6 November 2017.
  22. ^ "This Small Bank Is Putting Its Brand on Prosper's Loan Experience". American Banker. Retrieved 2017-09-26.
  23. ^ "Personal Loans - Radius Bank". Radiusbank.com. Retrieved 2017-09-26.
  24. ^ "Prosper Marketplace and Radius Bank Join Forces to Offer Personal Loans Through Online Lending Platform | Prosper". Prosper.com. 2015-09-16. Retrieved 2017-09-26.
  25. ^ "'Private-ish' Bank Aspiration to Exit Beta Within 6 Months". Bank Innovation. 2015-09-24. Retrieved 2017-09-26.
  26. ^ "Radius Bank Partners With Aspiration to Launch New Best-In-Class Personal Checking Account". Retrieved 2017-09-26.
  27. ^ a b "Radius Bank in Boston Launches National SBA Lending Platform". American Banker. Retrieved 2017-09-26.
  28. ^ "With Hiring Spree Radius Bank Takes Small Businesses". bizjournals.com. Retrieved 6 November 2017.
  29. ^ "Radius Equipment Finance". Radiusbank.com. Retrieved 2017-09-26.
  30. ^ "radius-bank-announces-acquisition-of-equipment-finance-division". Marketwired.com. Retrieved 6 November 2017.
  31. ^ "Radius Equipment Finance – Community Banking Redefined - Article | Equipment Finance Advisor". Equipmentfa.com. Retrieved 2017-09-26.
  32. ^ "NewStar Sells Equipment Finance Business To Radius Bank". GlobeNewswire News Room. Retrieved 2017-09-26.
  33. ^ "Radius Bank Rolls Out API Platform For B2B Banking". pymnts. 29 October 2020. Retrieved 5 November 2020.
  34. ^ "Radius Bank Unveils Commercial API Banking Platform & Developer Sandbox". Crowdfund Insider. 29 October 2020. Retrieved 5 November 2020.
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