In a Q4 LendingClub earnings call, CEO Scott Sanborn laid out the company’s vision for 2022, to keep building its on-balance-sheet loan portfolio and moving more into mobile-first, cloud-based platforms.
“We also intend to invest in infrastructure to further integrate banking data and move forward as a mobile-first, cloud-based digital bank,” he said. “This is where the consumer is headed and where we must continue to meet their expectations. Consumers want financial services that are seamless, on their terms — and they want personalized and predictive tools and information to make better and faster financial decisions.”
He said the company’s marketplace already delivers those needs and would keep building “a next-generation set of capabilities to meet future demand.”
Sanborn said the loan portfolio will grow through holding 15% to 25% of personal loan originations, which will “drive sustained, recurring revenue at high ROEs.”
The company also wants to look into investing in marketing to get more customers coming back for repeat business.
Sanborn also spoke about rising rates, and said it might help the company in some ways, as borrowers might end up needing the services more due to the fact that cards are pegged to a floating rate.
“With strong balance sheets and low unemployment levels, we do not expect rising rates to create significant payment stress for our core customers,” he said.
Sanborn predicted the company wouldn’t be impacted much by rising rates, and will be offset by high-yielding consumer loans.
Looking back at the last fiscal year, Sanborn said Q4 “caps a transformative year” for the company, which has achieved numerous milestones, including making a digital marketplace bank combining a FinTech’s innovation with a regular bank’s resiliency.
He said he was also pleased with the company’s profitability and its focus on operating efficiency.
PYMNTS wrote recently that LendingClub plans to cut out some services in 2022, like its yacht club business, because of the company’s focus on everyday Americans’ financial goals.
Read more: LendingClub Reorganizes to Focus on ‘Everyday’ Americans
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More