Question · Q3 2025
Reginald Lawrence Smith followed up on marketing, asking about the marginal cost to acquire a new loan and how it compares to the origination/marketplace ratio, suggesting potential for further efficiency. He also inquired about the BlackRock program and the insurance sales channel, specifically regarding liquidity for consumers and the potential for committed numbers from the insurance channel. Additionally, he asked about the feasibility and regulatory hurdles of a direct-to-consumer retail channel for loans.
Answer
CEO Scott Sanborn explained that LendingClub underwrites to a marginal cost of acquisition that reflects the customer's lifetime value, focusing on profitable, sustainable growth by improving targeting, creative, and conversion rates. He noted that repeat customers are lower cost, lower credit risk, and have higher lifetime value. CFO Drew LaBenne clarified that the BlackRock program is not direct-to-consumer, and the insurance pool is deep, offering a low cost of capital with potential for channel growth and improved average sales prices. Scott Sanborn added that while individual capital comes through managed funds, a direct-to-consumer retail model (like their original model) involves significant overhead and disclosure, making it less desirable.