LendingClub, an online lending marketplace, has wholly acquired Radius Bancorp, which includes its digital banking platform Radius Bank.
The deal, which was a cash and stock transaction, was valued at $185m.
Following the close of the transaction, LendingClub and Radius will combine their services to establish a digitally native marketplace bank which offers consumers the ability to open an account and access loans.
A benefit to the combined solution is that it can diversify and increase earnings by capturing the sizeable revenue opportunity which is absorbed by issuing banks. Other benefits include enhances resiliency over the economic cycle through low-cost funding and deliver regulatory clarity through close work with the regulators.
LendingClub customers will now be able to manage their cash flow and earn savings.
US-based Radius bank is a digital banking platform which offers personal, business and institutional banking accounts. Its offerings include checking and savings accounts, mortgages, credit cards, mobile payments and more.
LendingClub is an American peer-to-peer lending platform which enables users to access personal loans, small business loans and auto refinancing.
Radius president and CEO Mike Butler said, “LendingClub has always been a fintech innovator, and I look forward to leveraging the strengths of both of our talented teams as we usher in a new era in banking.
“We are excited for our employees to operate our virtual banking platform with more resources and for our clients to gain access to an industry-leading lending product. This is a perfect marriage, with LendingClub bringing the leading digital asset generation platform, and Radius contributing a leading online deposit gathering platform, to position the combined company for long-term success.”
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