LendingClub Acquisition Could Spur More Deals

LendingClub’s announced acquisition of Radius Bank could be the beginning of a market trend that sees more fintech firms buying banks; “Once companies like LendingClub reach a certain size, more of them are going to diversify and will want the profitability that deposits provide,” said James Bradshaw, an Analyst at Bridge City Capital, to American Banker; the deal also allows LendingClub to gain a bank charter and end their relationship with WebBank which will result in significant savings; there is no guarantees with the deal as the regulatory hurdle could make fellow fintechs wary of a potential acquisition; “We’ll see more of these,” said Ron Shevlin, Research Director at Cornerstone Advisors, to American Banker. American Banker

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