LendingClub, the parent of LendingClub Bank, on Wednesday (May 25) announced it is adding client-to-client sales to LCX, its automated loan-auction platform.
The new capacity will let institutional investors sell LendingClub loans to each other directly, the announcement said. The modification, based on LendingClub, should boost the liquidity for parties involved in transactions.
The added liquidity made possible by the elimination of intermediaries in transactions should result in the service more attractive to consumers of loans, said Valerie Kay, chief capital officer at LendingClub.
LCX reduces settlement periods to days from weeks and provides loan buyers more understanding of what is happening in the market. Originally tied to individual loans, the platform now can be employed to purchase complete loan portfolios, based on LendingClub.
The timing of the service may be just right for investors, if LendingClub Financial Health Officer Anuj Nayar was around the mark when he told PYMNTS that many consumers are showing indications of being unprepared for the shock of rising inflation.
\”What we have been predicting for months is exactly what has become happening,\” Nayar said in April. \”Inflation has effects on everybody's pocketbook, whether you're at the higher or even the lower end from the income spectrum. There will be belt-tightening, and there is no time such as the give step back and take stock.\”
In conjunction with the announcement, Gustavo Binnie of Latin American investment bank BTG Pactual said: \”The API-driven technology behind LCX allows for transparency and operational ease, which simplifies our shopping process.\”
San Francisco-based LendingClub premiered Fifteen years ago.