LendingClub’s Double-Digit Increase in Loan Origination Boosts Investor Optimism for a Borrowing Boom
Why go to the bank when you can scroll and swipe your way through a loan application? More Americans are swapping big-bank relationships for accessible loans from fintechs and online lenders. Last week, LendingClub reported a 27% year-over-year increase in personal loan originations, leading to its strongest revenues and earnings and marking its largest single-day gain since May.
- LendingClub’s management noted that banking partners are returning to the table “for the first time in about six quarters” — a promising sign for America’s lending environment.
- The strong growth at LendingClub could indicate that loan origination is finally picking up after years of high interest rates held borrowers back.
Borrowing boom: The recent rebound in fintech stocks shows investors are jazzed for financial services on mobile. Online lenders SoFi and Upstart are up 42% and 28%, respectively, over the last month, supported by larger financial firms. SoFi recently raised $2B from Fortress Investment Group for personal loans, while Upstart has won over credit unions like WECU and Alliant Credit Union.
