LendingClub, a fintech pioneer in the personal loan space, is expanding its reach into digital banking through its recent acquisition of Radius Bancorp. The deal, which was completed in February 2021, has transformed LendingClub into a full-fledged digital bank, enabling the company to offer a broader range of financial products and services to its customers.

With the acquisition of Radius Bancorp, LendingClub gains access to a state-chartered digital bank that offers a range of deposit products, including checking, savings, and money market accounts. This move marks a significant shift for LendingClub, which has historically focused on providing unsecured personal loans to consumers.

According to LendingClub CEO Scott Sanborn, the acquisition of Radius Bancorp will enable the company to offer a more comprehensive suite of financial products and services to its customers, allowing them to manage their money in one place. “We will be the only company with the ability to offer both a marketplace lending platform and a digital bank,” said Sanborn in a statement.

The acquisition of Radius Bancorp also positions LendingClub to compete more effectively with traditional banks, which have been slow to adopt digital technologies and cater to the needs of younger, tech-savvy customers. With a fully integrated digital banking platform, LendingClub is well-positioned to capture a larger share of the growing digital banking market and offer a seamless, user-friendly experience to its customers.

In conclusion, LendingClub’s acquisition of Radius Bancorp represents a major milestone in the company’s evolution from a peer-to-peer lender to a full-fledged digital bank. With this move, LendingClub is poised to disrupt the traditional banking industry and offer a more comprehensive suite of financial products and services to its customers.