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

This strategic relationship brings together Lending Club's low operating cost and Union Bank's strong balance sheet and large customer base. Both companies focus on responsible lending and customer service, which will help unlock lower rates and superior service to both companies' customers.

"Union Bank has an admirable reputation for transparency, high quality products and customer service," said Lending Club CEO Renaud Laplanche. "We feel honored to join with Union Bank to bring innovative solutions to market together."

"This relationship will allow Union Bank to invest in high quality assets while bringing new products to our customers," said Union Bank Executive Vice President 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."