14 Apr LendingClub partners with Citi Group
LendingClub announced today that it is partnering with Citigroup. Lending Club is the world’s largest peer-to-peer lending marketplace. In December 2014 LendingClub made its debut on the New York Stock Exchange and raised nearly $860 milion in the first ever-initial public offering for an online lending platform. LendingClub now has a market valuation of $9 billion, making it the 14th-biggest bank in America.
The partnership with Citigroup marks another debut, it is the first partnering with a so-called universal bank. According to Renaud Laplanche, LendingClub’s founder and chief executive, Citi will use the firm’s platform to supply up to $150 milion to “underserved” borrowers that its branch network is unable to reach. It is a key step in the attempt by the peer-to-peer lender to “transform” the banking system.
Citigroup is the number three US bank by assets, This is not the first partnership of LendingClub with a large corporation. Just a month ago LendingClub entered a partnership with Alibaba group to provide financing for manufacturers in the United States to buy products and supplies through the Chinese marketplace Alibaba.com
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