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