On February 1, 2021, LendingClub closed the acquisition of Radius Bancorp and its wholly-owned subsidiary, Radius Bank, becoming the only full-spectrum financial technology (fintech) marketplace bank and the first public U.S. neobank.
This article answers some frequently asked questions about the acquisition and what it means for the future of our organization and our members.
Why did LendingClub acquire Radius Bancorp?
We’ve been investigating ways to add banking capabilities to our business since 2018. Initially, we connected with Radius to explore implementing its banking-as-a-service (BaaS) platform as a way to add traditional banking to our industry-leading lending business.
Ultimately, we discovered that Radius’s dynamic culture and entrepreneurial spirit presented an exciting opportunity. We could transform both organizations by joining together the two sides of the banking balance sheet—loans and deposits—and, in turn, pass significant savings on to our members.
Together, we’ll offer new and innovative financial solutions to consumers across the lending and deposit spectrum.
What is Radius Bank?
Voted the nation’s best online bank in 2020 by Bankrate,1 Radius’s award-winning, branchless digital banking platform provides superior customer service through state-of-the-art technology. With approximately $2.4 billion in assets, Radius serves consumers, small businesses, unions, government entities, fintechs, and nonprofit organizations.
The Radius platform provides convenient features such as check deposit, bill pay, card management, and a personal financial management dashboard, as well as open APIs that offer BaaS functionality to leading fintechs.
Will my LendingClub account change?
No, your current LendingClub loan account won’t change, and you’ll continue making payments to LendingClub. We’ll keep providing the outstanding service and support you've come to rely on. We will communicate any potential changes well in advance of those changes happening.
What new products are available to me?
We are still in the process of finishing the integration of these two great organizations—in the future, you’ll gain access to a broad range of financial products and services through a technology-driven platform, designed to help you pay less when borrowing and earn more when saving. We’re cooking up some new and exciting products we hope to share with you soon.
Will LendingClub become just another bank?
Absolutely not! While we will have the capabilities of other banks, we’re striving to become something new—a marketplace bank. Our goal is to transform traditional checking and savings in the same way we transformed the personal loan industry.
Through technology, culture, and values, LendingClub Bank, N.A. will look to reduce consumer financial costs and increase access to money-saving products. We’re reimagining financial services in a way that is free from legacy systems and outdated practices. We envision a future where our institution’s success aligns with our members’.
Where can I get more information?
Visit our blog to learn more about the Radius acquisition and the benefits it brings to our members. If you have other questions, contact us by signing in to your Member Center, or call us at 888-596-3157. We're here Monday through Friday from 5 am to 5 pm, and Saturday from 8 am to 5 pm Pacific Time.