Happy Birthday to Us: Lending Club Turns 3
It was during the first week of June in 2007, when the Lending Club team was huddled around a screen watching our first loan originate. Thanks to an amazing team, participative users, and rapid adoption of the peer lending concept in the US, we have come a long way since our days as a the top Facebook financial app.
But let’s have the numbers talk for themselves:
- Currently issuing more than $10 million in loans per month to prime borrowers
- Lending Club has captured 80% of the U.S. peer lending market based on monthly volume
- Rates start at 7.93% APR, which is 53% lower than the overall national credit card APR of 14.9%
- Investors have received solid returns of 9.64% net annualized returns since inception
- Over $1.5 billion in loan requests
- Nearly $136 million in more than 14,000 loans
- $9.6 million paid in interest to investors
I remember hearing skeptical comments early on around the level of quality of borrowers and a short track record of positive returns while in the midst of economic uncertainty. Three years later, we have proven there is great demand for peer loans from credit-worthy borrowers, while showing solid returns to our investors.
In a short 3 years, Lending Club has transformed peer lending from a feel-good web-based money lending application to a proven concept that creates great value for both borrowers and investors.
Image courtesy of Arena Flowers.