Peer-to-peer lender Lending Club secured up to $1.3 billion from a subsidiary of the National Bank of Canada to be deployed on its online platform over the next 12 months.
The investment will be undertaken by Credigy, a U.S. subsidiary of NBC, which specializes in consumer finance investment.
“We’re pleased to add this platform purchase program with Credigy to our investor capital mix. As we take multiple strategic actions to enhance our marketplace, we see the Credigy program as a way we’re further diversifying our investor base and adding the funding visibility and stability that can make us even more resilient in various market conditions,” said Scott Sanborn, president and CEO at Lending Club
“Lending Club is a clear leader in delivering access to unsecured consumer credit. Based on Lending Club’s track record of loan performance and our extensive review, we are excited to establish this purchase program and invest on the platform,” said Brett Samsky, CEO of Credigy.
Lending Club’s investor base spans a broad range of retail investors, banks, asset managers and a variety of institutions. The Credigy program joins other recent developments in Lending Club’s funding mix, including the launch of a 40 Act Fund and the completion of a successful securitization that supplements the stability of the retail investor base.