Lending Club Partners with Alliance Partners

LendingClub partners with Alliance Partners, which controls¬†BancAlliance, a consortium of community banks. This move is part of an lending environment shift where smaller banks are losing market share for the last 20 years¬†in the consumer lending business against the big banks (big vs. small bank lending). This move allows Alliance Partners’s network of banks to co-brand consumer loans as well as invest into these loans while benefiting LendingClub’s efficient marketplace model.

Key Facts:

  • BancAlliance’s members stretch across 39 states, and combined would rank fourth in branch count among all U.S. banks, and 14th in assets.
  • Alliance Partners will co-brand new loans at its banks as well as invest in certain loans (presumably lower graded/risk loans).
  • This partnership provides an additional loan origination channel for unsecured consumer loans that increases loan volume and decreases the acquisition cost per borrower.

LendingClub Press Release

Wall Street Journal Coverage