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EXCLUSIVE: LendingClub CEO Talks Lending, Spending And Savings On 'Power Hour'

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EXCLUSIVE: LendingClub CEO Talks Lending, Spending And Savings On 'Power Hour'

LendingClub Corp (NYSE: LC) blew away estimates and raised guidance when the company reported its financial results last week. CEO Scott Sanborn appeared on Benzinga's YouTube show "Power Hour" for an exclusive interview Wednesday.

LendingClub was founded in 2007 on the idea that data and technology could be used to transform banking, Sanborn said.

The company started out by lowering the cost of credit and increasing access to credit in the personal loan segment. Shortly thereafter, LendingClub became the market leader for personal loans, he added.

LendingClub's Digital Bank Acquisition: The company added to its portfolio of offerings by acquiring a digital bank, Sanborn told Benzinga.

On Feb. 1, LendingClub closed its acquisition of Radius Bancorp. The acquisition combined the strengths of two digital innovators with complementary businesses and a digital-first, branchless approach to banking.

LendingClub completed the acquisition as a result of customer demand for assistance with spending and saving in addition to lending, Sanborn said.

The acquisition created a new revenue stream for LendingClub, which complimented the ability of the company to deliver sustained growth.

The LendingClub Mission: There is a strong correlation between high income and high debt, Sanborn noted. LendingClub aims to help reduce the cost of debt for its customers.

The LendingClub CEO told Benzinga the company has a "multi-award-winning rewards checking account that is dead on brand for LendingClub. What it does is it rewards people for spending money they have, as opposed to rewarding people for going into debt."

The company's mission is to help its customers use data and technology to drive down the costs of credit and in turn, increase savings, Sanborn said.

See the full interview here:

LC Price Action: LendingClub is making a new 52-week high in trading today.

The stock closed up 5.7% at $27.56.

 

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