25 June 2017
download the report now

Union Bank joins forces with P2P loan platform Lending Club

06 May 2014  |  6809 views  |  1 cash

California's Union Bank has become the latest commercial bank to join forces with an online peer-to-peer loan approval site by entering a strategic alliance with Lending Club.

Under the agreement, Union Bank will purchase personal loans through the Lending Club platform, and the two companies will work together to create new credit products to be made available to both companies' customer base.

"This relationship will allow Union Bank to invest in high quality assets while bringing new products to our customers," says Union Bank EVP James Francis, head of consumer lending. "Lending Club delivers an excellent customer experience and has established a reputation for innovation. We are excited to work with this innovative organization."

As of March 31, 2014, more than $4 billion in personal loans have been originated through the Lending Club platform. In the same month, the company launched a small business loan platform, and in April acquired Springstone Financial which offers consumer financing for education and healthcare.

Big banks and institutional investors have recently begun sniffing around P2P lenders, with City Group, Capital One, Bank of Montreal and Deutsche Bank all buying up loans originated through these platforms.

In March, Barclays Africa (formerly Absa) went one step further in acquring a 49% stake in South African peer-to-peer lending marketplace RainFin.

Comments: (1)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 07 May, 2014, 17:37

I suspect that this is yet another wannabe bank killer trying to stay afloat by pivoting itself into a banking agent. I remember that the charter of one of these self-proclaimed disruptors had originally forbidden banks from taking the other side of loans initiated on their P2P lending platforms. Reality strikes hard now.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

UK to explore legislation to make banks refer small businesses to alternative platforms

UK to explore legislation to make banks refer small businesses to alternative platforms

19 March 2014  |  7619 views  |  0 comments | 21 tweets | 28 linkedin
WestPac fund buys stake in Oz P2P lending platform SocietyOne

WestPac fund buys stake in Oz P2P lending platform SocietyOne

11 March 2014  |  5195 views  |  0 comments | 5 tweets | 5 linkedin
Barclays Africa buys stake in South African P2P lender RainFin

Barclays Africa buys stake in South African P2P lender RainFin

05 March 2014  |  6940 views  |  0 comments | 4 tweets | 5 linkedin
P2P lending shows big upswing in 2013

P2P lending shows big upswing in 2013

03 February 2014  |  6124 views  |  0 comments | 12 tweets | 8 linkedin
Wells Fargo bans staff from using P2P lending platforms

Wells Fargo bans staff from using P2P lending platforms

21 January 2014  |  7505 views  |  0 comments | 14 tweets | 9 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.events.sap.comvisit www.finastra.comvisit www.www.fisglobal.com

Top topics

Most viewed Most shared
Live: EBAday 2017, day twoLive: EBAday 2017, day two
9641 views comments | 4 tweets | 5 linkedin
Worldpay pilots app-only mPOS for small retailersWorldpay pilots app-only mPOS for small re...
9195 views comments | 18 tweets | 27 linkedin
Live: EBAday 2017, day oneLive: EBAday 2017, day one
8784 views comments | 3 tweets | 4 linkedin
UK banks will need to change one million sort codes under ring-fencing rulesUK banks will need to change one million s...
8242 views comments | 8 tweets | 25 linkedin
What Banks and their customers can expect for the futureWhat Banks and their customers can expect...
7251 views comments | 7 tweets | 10 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job