LendingClub Expands LCX Platform

Rhea-AI Summary

LendingClub Corporation (NYSE: LC) announced an expansion of its LCX platform, enhancing the ability for institutional investors to analyze and bid on loans before they are originated. This industry-first innovation allows LendingClub to sell loans dynamically, improving liquidity and preserving balance sheet resources. The platform aims to offer real-time, data-rich environments for investors, facilitating better purchase strategies. LendingClub's efforts are focused on creating a more efficient marketplace for borrowers and investors, contributing to competitive risk-adjusted returns.

Positive

• Expansion of LCX platform enhances loan analysis and bidding capabilities for institutional investors.
• Dynamic pricing allows for selling loans prior to origination, preserving balance sheet liquidity.
• Improved real-time data access for investors increases precision in purchase strategies.

Negative

• None.

SAN FRANCISCO, June 30, 2020 /PRNewswire/ -- LendingClub Corporation (NYSE: LC), America's largest online marketplace connecting borrowers and investors, today announced the expansion of its LCX platform to make it easier for registered institutional investors to analyze, price, and bid on loans at the time a loan is originated (pre-issuance), down to the individual loan level.

When first launched, the industry first innovation LCX enabled the company to sell previously originated loans at dynamic and competitive prices (at, above or below par), from LendingClub's balance sheet. For the first time, this expansion now allows LendingClub to sell loans at dynamic pricing before they are originated.

These loans do not hit the company's balance sheet, helping LendingClub preserve liquidity. The LCX expansion also increases investors' ability to evaluate and execute their purchase strategies with absolute precision in a real-time, data rich environment. Loans on this agile framework will be offered on the LendingClub marketplace multiple times per day. 

"As a technology-driven marketplace, we want to remove friction and encourage investors to trade electronically and with precision whether its pre-issuance or post-issuance, with LendingClub or each other. We believe this will result in increased liquidity of this asset class and add marketplace functionality that previously did not exist," said Patrick Coicou, LendingClub Senior Director Electronic Markets. "We expect to continue to utilize new technology to make this asset both more tradeable and investable while improving the experience for platform investors. We believe this evolution will be a major part of our goal of continuing to provide market-based rates for borrowers and competitive risk-adjusted returns for investors."

"We're excited to continue working together with LendingClub to create market leading solutions," said Gal Krubiner, CEO and Co-Founder of Pagaya Investments. "This LCX expansion is the next evolution in allowing investors to pinpoint risk and increase liquidity."

This LCX expansion is another evolution of the way LendingClub is selling loans in response to changing market conditions and builds on the announcement of its LCX platform last year. The LCX platform is unique to the industry and helps move the entire asset class forward through leveraging technology. The adoption of electronic trading at LendingClub has allowed for faster deployment of capital, improved liquidity, price discovery and an efficient and scalable order execution process.

LendingClub offers loans to institutional investors through four platforms -- Scale, Select, Select Plus, and the combined LCX suite. Member Payment Dependent Notes are also offered for retail investors by prospectus. The company plans to eventually replace the Select platform with LCX. To learn more about the company, visit -1%26h%3D3773217917%26u%3Dhttps%253A%252F%252Fc212.net%252Fc%252Flink%252F%253Ft%253D0%2526l%253Den%2526o%253D2544095-1%2526h%253D3430145507%2526u%253Dhttp%25253A%25252F%25252Fwww.lendingclub.com%25252F%2526a%253Dwww.lendingclub.com%26a%3Dwww.lendingclub.com&a=www.lendingclub.com" rel="nofollow">www.lendingclub.com.

About LendingClub
LendingClub was founded to transform the banking system to make credit more affordable and investing more rewarding. Today, LendingClub's online credit marketplace connects borrowers and investors to deliver more efficient and affordable access to credit. Through its technology platform, LendingClub is able to create cost efficiencies and passes those savings onto borrowers in the form of lower rates and to investors in the form of risk-adjusted returns. LendingClub is based in San Francisco, California. All loans are made by federally regulated issuing bank partners. More information is available at -1%26h%3D1533600894%26u%3Dhttps%253A%252F%252Fwww.lendingclub.com%252F%26a%3Dhttps%253A%252F%252Fwww.lendingclub.com&a=https%3A%2F%2Fwww.lendingclub.com" rel="nofollow">https://www.lendingclub.com.

Safe Harbor Statement
Some of the statements above, including statements regarding the functionality and benefits of the LCX/LCXPM platform, expected improvements in platform functionality, platform returns and the replacement of the Select platform, may be "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 these identifying words. Factors that could cause actual results to differ materially from those contemplated by these forward-looking statements those factors set forth in the section titled "Risk Factors" in our most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K, each as filed with the Securities and Exchange Commission. We may not actually achieve the plans, intentions or expectations disclosed in forward-looking statements, and you should not place undue reliance on forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in forward-looking statements. We do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Information in this press release is not an offer to sell securities or the solicitation of an offer to buy securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

CONTACT:
For Investors: IR@lendingclub.com
Media Contact: Press@lendingclub.com

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SOURCE LendingClub Corporation

FAQ

What is the latest news about LendingClub's LCX platform?

LendingClub announced an expansion of its LCX platform, allowing institutional investors to analyze and bid on loans before they are originated.

How does the expansion of the LCX platform benefit investors?

The expansion improves liquidity and allows investors to evaluate loans with greater precision in a real-time environment.

When was the LCX platform expansion announced?

The LCX platform expansion was announced on June 30, 2020.

What does the LCX platform enable LendingClub to do?

The LCX platform enables LendingClub to sell loans dynamically before they are originated, improving the trading of the asset class.

What is the significance of LendingClub's LCX expansion for its balance sheet?

The LCX expansion allows LendingClub to sell loans that do not hit its balance sheet, preserving liquidity.