Lending Club

Running time: 4:58

Script:

We would like to introduce you to Lending Club, an online credit marketplace that is transforming the financial industry. And make it more transparent, more efficient and user friendly. Traditional lending has historically been dominated by large banks that stand between borrowers and depositors. Banks provide credit to borrowers, by accessing pools of capitol supplied by depositors, and generate revenue by charging high interest rates to borrowers, while paying low interest rates to depositors. Today, this tradition lending model has be come a massive global business.

There's over $2.8 Trillion in American consumer credit, and $280 Billion in immediate business loans, generating billions of fees for banks. But this model is inefficient, and ripe for disruption. Traditional banks have a fixed high interest cost, strict regulatory rules and large capitol requirements, and these inefficiencies are passed on to higher interest rates for borrowers, and lower yields for depositors.

We believe that our technology platform has created the opportunity to disrupt this massive market with a better solution. Introducing Lending Club, an online financial community, that brings together credit-worthy borrowers, and savvy investors, so they both can financially benefit. We've built a classic internet marketplace that brings together people to interact. directly. So how does it work? Borrowers apply for loan directly online, using the lending club platform, it carefully screens all applications using a propitiatory lending data, which proves less than 10% of all loan requests, allowing only the highest quality request through. Lending club earns up to 5% fee for originating loan. Investors on the platform. invest in notes, that represent fractions of loans, potentially hundreds, even thousands of loans that allow investor to diversify quickly and easily with full transparency.

As borrowers pay back their loans, investors get a stream of cash each month that can provide a solid turn on investment. Here's the basic math: consider an investor who has made a portfolio of loans paying an average of 13% interest per year, even borrowers with great credit to default. So this portfolio might see 4% default on average, and Lending Club earns a %1 fee, and the investor earn 8% net per year. By offering lower interest rates than others available, we've made a completely new product for borrowers that delivers immediate savings. Similarly, for Investors, we've created a new investment security that offers the opportunity to directly fund credit worthy individuals with full transparency. By eliminating the friction and creating a new asset class, investors on our platform have superior risk adjusted returns. Although we compete with traditional banks for loan originations. Our similarities end there. We don't take deposits directly, and all loans to borrowers and originated by a third-party that is chartered FDIC regularity bank. Consequently, we eliminate the burden of traditional banks, instead we have a clean regulatory structure and have been an SCC registrant for over 5 years. And unlike a traditional bank, we don't take direct credit risk in the loans.

We're a technology innovated platform benefiting from massive reach and scale without the burdens of a fixed cost or operating physical branches, and getting over significant regulatory hurdles by breaking traditional banking and creating and entirely new marketplace. We believe we are disrupting one of the largest and oldest banking in the world. And while we are the largest credit market place in America, and we have grown 8% month on month for the past 3 years, we're just getting started! The loans on our platform, represent less than 1% on credit card market, and we just launched a new, small, immediate business product. We also benefit from powerful network effects. As the loans originated on our platform continues to increase, we generate more and more proprietary data, which allows us to refine out credit screening algorithms to deliver better results for our investors, higher reinvestment rates, and a better track record. ultimately driving more demand for out platform. While there are others trying to do the same things as us, we enjoy the competitive advantage of being the largest in peer to peer Lending Market, where size matters. Are you ready for the future of global banking? Welcome, to Lending Club.