LendingClub Continues Quest to Reimagine Banking with Radius Bank Acquisition

Yesterday, LendingClub shared that they were acquiring Radius Bank for $185 million in cash and stock; this is the first time that a US fintech has acquired a bank; Radius Bank is a digital bank with $1.4 billion in assets and is highly rated by various comparison websites; CEO of LendingClub Scott Sanborn shared that the forward thinking culture at Radius will blend in well with their own; LendingClub expects the investment to pay for itself in two years and that the transaction will be completed in 12-15 months; some of the benefits for LendingClub include access to the deposit base and no longer having to rely on existing bank partners which will save money over the long term; in Q4 2019 LendingClub achieved GAAP profitability by a small margin and fell short of revenue expectations; included in our blog post are more thoughts from CEO Scott Sanborn and LendingClub’s outlook for Q1 2020 and full year. Lend Academy

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