09 February 2016

Lending Club moves out of Facebook with new community site

14 September 2007  |  7356 views  |  0 mouse

P2P loan network Lending Club is expanding beyond its original Facebook member base to connect lenders and borrowers over the public Internet via a new Website, LendingClub.com.

The move out of the FaceBook community comes less than a month after the California-based start-up secured $10.26 million in a Series A funding round. Since its launch at the end of May, the Lending Club 15,000 Facebook users who have loaned and borrowed more than $1 million among themselves.

Using Lending Club, borrowers can apply for personal loans of $500 to $25,000 to be funded by one or many individual lenders. To date lenders have funded 90% of all approved loan requests. Lending Club handles user authentication, bank account verification, credit checking, credit reporting, funds transfers and collections.

The Lending Club system uses a proprietary affinity-matching technology that looks at factors such as where a person grew up, went to school or what they do for a living, and assigns credit scores to individual borrowers. The new site also includes 'Better Rates Together' a blog community that features expert advice on P2P lending and personal finance.

Renaud Laplanche, founder and CEO of Lending Club, states: "We promote responsible lending and borrowing with fixed-rate installment loans which allow borrowers to pay off 100% of their loan within 36 months. By cutting the banks out, both lenders and borrowers get a better deal and help each other."

By extending its reach beyond the Facebook community, Lending Club will enter direct competition with rival service Prosper which was launched in February 2006 and now claims more than 400,000 members who have made loans totaling in excess of $85 million.

The company recently released its first batch of monthly stats, which show steady year-on-year growth. Prosper said it had 30,623 new members in August vs. 12,825 new members in August 2006 and funded loans of $6.6 million in the month, against $3.9 million a year earlier.

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

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

Related stories

24 August, 2007
20 June, 2007
18 June, 2007
25 May, 2007
19 March, 2007
09 March, 2007
01 November, 2006
26 July, 2006
28 March, 2006
08 February, 2006

Related company news


Top topics

Most viewed Most shared
Fintech rising: Resistance is futile, says...
11921 views comments | 51 tweets | 45 linkedin
Digital transformation driving earnings at...
10685 views comments | 49 tweets | 43 linkedin
Visa opens up to developers
8733 views comments | 24 tweets | 41 linkedin
UK sets out open banking API framework
7493 views comments | 55 tweets | 48 linkedin
European mobile banking service Pocopay go...
7379 views comments | 24 tweets | 14 linkedin

Featured job

to $120K base, double OTE, benefits
New York City, NY or Boston, MA (USA)

Find your next job