LendingClub leaves yacht lending sector
LendingClub is leaving the yacht lending sector following a strategic review of its business operations.
In a blog post, chief executive Scott Sanborn said that yacht loans are “simply not in line with our mission to help everyday Americans on their path to financial health and we plan to grow our auto refinance business to take its place”.
He said during the review the lender asked certain partners to modify their activities and has begun exiting certain partnerships.
LendingClub closed to retail investment last year ahead of completing its acquisition of digital lender Radius Bancorp in February. At that time, as well as the direct-to-consumer deposit business, LendingClub inherited a fintech partner program, and several lending businesses.
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“As we reach the one-year anniversary of the acquisition, and in conjunction with the conclusion of a strategic review of our business operations, we have made the decision to discontinue certain businesses that don’t fit our mission,” Sanborn said in the blog on LendingClub’s website.
“This includes our yacht loan business. Yacht loans are simply not in line with our mission to help everyday Americans on their path to financial health and we plan to grow our auto refinance business to take its place.
“During the review, we also thoroughly examined relationships and operating activities for the fintech partners.
“As a result of our review, we are asking certain partners to modify their activities and/or operations to match expectations and contractual commitments, and we have begun exiting certain partners.
“As part of the ongoing dialogue with these partners, we have discussed transition plans or operational changes that could impact the services available to these partners and their customers.”
Sanborn said the business model changes will have no material effects on LendingClub’s business operations and the lender plans to report more details when it issues its full year 2021 and fourth quarter earnings in a few weeks’ time.