LendingClub announced today that they will no longer be originating small business loans themselves; instead, they will be creating a new ecosystem with co-branded small business lending initiatives with both Funding Circle and Opportunity Fund; small business loans will no longer be funded by LendingClub investors, instead Funding Circle and Opportunity Fund investors will be funding the loans; LendingClub president Steve Allocca said, “This move is part of a proactive shift in the evolution of the business model at LendingClub. We want to move towards offering a multi-sided platform to our members with several offerings, some of which we fulfill ourselves and others will be fulfilled by third parties.”. Source.
Peter Renton is the chairman and co-founder of LendIt Fintech, the world’s first and largest digital media and events company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series. Peter has been interviewed by the Wall Street Journal, Bloomberg, The New York Times, CNBC, CNN, Fortune, NPR, Fox Business News, the Financial Times, and dozens of other publications.