LendingClub targets cloud and mobile platforms first
In a Q4 loan club call for results, CEO Scott Sanborn outlined the company’s vision for 2022, to continue to grow its on-balance sheet loan portfolio and move further to mobile and cloud-based platforms.
“We also intend to invest in infrastructure to further integrate banking data and move forward as a cloud-based digital bank,” he said. “This is where the consumer is heading and where we must continue to meet their expectations. Consumers want transparent financial services, on their terms – and they want personalized, predictive tools and insights to make better financial decisions, faster.
He said the company’s market is already meeting those needs and will continue to build “a set of next-generation capabilities to meet future demand.”
Sanborn said the loan portfolio will grow by holding 15% to 25% of personal loans, which will “generate recurring and sustained revenue at high ROE.”
The company also wants to consider investing in marketing to entice more customers to return for recurring business.
Sanborn also spoke about the rate hike and said it could help the company in some ways, as borrowers may end up needing the services more due to the cards being pegged to a floating rate.
“With strong balance sheets and low unemployment rates, we don’t expect rising rates to create significant payment stress for our key customers,” he said.
Sanborn predicted that the company would not be affected much by rising rates and would be offset by high-yielding consumer loans.
Looking back on the past fiscal year, Sanborn said the fourth quarter “caps off a year of transformation” for the company, which has achieved many milestones, including creating a digital market bank that combines the innovation of a FinTech with the resilience of an ordinary bank.
He also said he was pleased with the company’s profitability and its focus on operational efficiency.
PYMNTS wrote recently that LendingClub plans to cut some services in 2022, such as its yacht club business, due to the company’s focus on the financial goals of everyday Americans.
Read more: LendingClub reorganizes to focus on ‘everyday’ Americans