LendingClub won’t be going forward with several business operations in 2022, including its yacht loan business, according to CEO Scott Sanborn.
“Yacht loans are simply not in line with our mission to help everyday Americans on their path to financial health and we plan to grow our auto refinance business to take its place,” Sanborn said in a company blog post Monday (Jan. 4).
In addition, the company won’t be going forward with all its relationships with some FinTechs, asking some of them to change their activities or operations “to match expectations and contractual commitments.” Some partnerships will be outright ended.
“As part of the ongoing dialogue with these partners, we have discussed transition plans or operational changes that could impact the services available to these partners and their customers,” Sanborn added.
LendingClub says it has a “unique perspective” in the space, having operated for 15 years as a FinTech, using a partner bank model. Now, the company says it works as a FinTech, a bank and a partner bank.
LendingClub also recently announced the debut of automobile refinance loans in 40 states. This will reach around 94% of the population in the U.S., PYMNTS writes.
Read more: LendingClub Drives Auto Refinance Across 40 States, Reaching 94% of US Population
The average borrower will save around $4,000 over the course of the debt. LendingClub was first debuted in California in 2016, and the company’s auto refinance product reportedly has loan completion in three days as opposed to several weeks.
Americans carry around $1 trillion in auto loan debt. That makes the company the fourth-largest share of household debt after mortgage loans, home equity credit lines, and student loans.
Around 66% of LendingClub’s members have a car loan. The average annual percentage rate (APR), according to the company, is around 5% lower than previous loans.
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