LendingClub (LC) investor relations material

Strategic transformation, direction, and growth outlook

• Transitioned to a digital marketplace bank model, leveraging a proprietary tech stack and data-driven underwriting to target the 'motivated middle'—an underserved, above-average income segment representing a large credit market.

• Focused on acquiring customers through lending, then deepening engagement with tailored products and digital experiences, driving repeat borrowing and cross-sell opportunities.

• Competitive advantages include advanced machine learning underwriting, rapid product innovation, and a flexible balance sheet/marketplace model, enabling superior credit performance and scalable, capital-light growth.

• Announced entry into home improvement financing via technology acquisitions (Mosaic) and partnerships (Wisetack), accelerating expansion into a $500B market as the next major scalable adjacency.

• Embedded growth engine leverages repeat borrowing and cross-product engagement to maximize lifetime value.

Financial guidance, growth targets, and capital allocation

• Medium-term goal to double annual originations to $18–22B, with $5–10B from personal loans, $2–3B from major purchase finance (including home improvement), and $1B from secured lending.

• Bank assets targeted to grow from $11B to ~$20B, with net interest margin expected to rise from 5.4% to 6.5% as rates normalize.

• Medium-term guidance: 20–30% annual origination growth, 18–20% ROTCE, efficiency ratio improvement to 55–60%, and marketplace revenue margin recovery to 5.5–7.0%.

• Announced a $100M stock repurchase program, enabled by excess capital and strong internal capital generation.

• Transitioning to fair value accounting for new originations in 2026 to align financial reporting, improve transparency, and match revenue recognition with loss timing.

Technology and product innovation

• Proprietary technology stack enables rapid product launches, partner integrations, and AI-driven process improvements, reducing loan operating costs by 26% over three years.

• Machine learning underwriting enables 2.4x more approvals, 40% lower delinquencies, and 25% better recoveries than competitors, with industry-best fraud loss rates (<3bps).

• Launched new products such as LevelUp Savings and Checking, DebtIQ, and top-up loans, driving higher engagement, cross-sell, and customer retention.

• Mobile app engagement has increased, with digitally active borrowers rising from 25% to 42% in two years, and app-based loan issuance growing more than 5x year-over-year.

• Acquisitions (Narmi, Tally, Cushion, Mosaic) have accelerated product development and market entry, particularly in home improvement and embedded finance.