LendingClub’s Q3 Results Show Double-Digit Growth

LendingClub’s third quarter results, released after the market closed Wednesday (Oct. 22), detailed double-digit growth in loan originations and a surge in new account openings tied to its LevelUp checking offering.

Company materials indicate that loan origination growth reached 37%, totaling $2.6 billion – the highest level in three years. Revenues of $266 million increased 32% year over year.

During the conference call with analysts, CEO Scott Sanborn attributed the loan growth to “strong demand from both consumers and loan investors, and our increased marketing efforts.” He added that marketplace revenues rose 75% (to $108 million) and structured certificate sales exceeded $1 billion.

LevelUp Momentum

sanborn stated that members are responding positively to LevelUp checking, with a 7x increase in account openings compared to their previous checking product. A recent survey revealed that 84% of respondents are more likely to consider a LendingClub Corporation loan with the offer of 2% cash back for on-time payments through LevelUp checking. Nearly 60% of new accounts opened are being opened by existing LendingClub borrowers.