One of the key ways LendingClub is different than many other marketplace lending platforms is that we serve a deeply diversified investor base, including retail investors, banks, large asset managers, foundations and endowments, and other types of institutions. We are committed to managing an efficient marketplace that works for both investors and borrowers on our platform.
The mechanics of the platform allow us to meet the objectives of many different types of investors, including retail investors. Here’s how it works. Once loans are approved to the LendingClub platform, they are randomly allocated at a grade and term level either to a program designed for retail investors purchasing interests in fractions of loans (e.g. LendingClub Notes) or to a program intended for institutional investors. This helps ensure that investors have access to comparable quality loans no matter which type of investor they are. Our goal is to meet incoming investor demand for interests in fractional loans as much as possible.
The design of our platform emphasizes how important retail investors are to LendingClub. We see our retail investors as a key component of our diverse marketplace strategy. Retail investors are—and will always be—the heart of the LendingClub marketplace.