Question · Q3 2025
Vincent Albert Caintic asked about the strong demand for LendingClub's marketplace loans, structured certificates, and seasoned portfolio, contrasting it with broader industry concerns about institutional investor appetite for fintech-originated loans, and whether LendingClub's funding mechanisms offer a competitive advantage. He also inquired about credit performance, specifically the 2.9% charge-offs, and any changes in application quality or delinquency evolution in lower credit tiers. Finally, he questioned the optimal level for LendingClub's 18% CET1 ratio.
Answer
CFO Drew LaBenne affirmed strong institutional appetite for LendingClub's asset class, highlighting the importance of track record and LendingClub's position as a partner of choice. CEO Scott Sanborn stated that LendingClub maintains very restrictive underwriting, especially in lower credit tiers, with only 5% of originations from earners below $50,000, and is not observing broad themes of consumer struggle in its portfolio due to disciplined underwriting. Drew LaBenne indicated that excess capital is primarily for balance sheet growth, with other options considered if that goal is met.