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Lending Club: Adjusting to the Fed's Fast Pace

 
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LendingClub is adapting to the Fed's fast pace by buying a bank, diversifying assets, and even being named as a winner of the 2023 Top Workplaces USA Award.

Description: An image of the LendingClub logo on a white background.

LendingClub is an online lender which has recently bought a bank to better adapt when interest rates climb. The company operates in a risky sector, but has a pretty solid business model, allowing passive investors to diversify their assets by investing in different types of loans. As a result, LendingClub sells a big portion of its loans to institutional investors that have been taken out of the marketplace by soaring interest.

Despite this, LendingClub fell after reporting earnings. Net interest margin is squeezed, and originations are down. However, the company appears to be in a good position to stay afloat financially. Furthermore, LendingClub has been named a winner of the 2023 Top Workplaces USA Award, and is included in the 2023 Bloomberg Gender-Equality Index.

In addition, the LendingClub High-Yield Savings stands out for offering one of the highest yields on your money. It also doesn't charge a monthly fee and there are no minimum balance requirements. American consumers expect high inflation to continue, and according to surveys conducted by Pymnts.com and Lending Club, 42% of those surveyed at the end of 2021 expect inflation to remain high.

Overall, LendingClub is making the necessary adjustments to adapt to the Federal Reserve's fast pace. The company is in a better position financially, and is receiving recognition for its efforts to be gender-equal. Furthermore, its High-Yield Savings account is attractive to consumers and provides a great return on their money.

Labels:
lendingclubfedbankinterest ratespassive investorsdiversifyinstitutional investorsnet interest marginoriginationstop workplaces usa awardbloomberg gender equality indexhigh-yield savings
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