LendingClub Changes Strategy With Small Business Lending

LendingClub announced today that they will no longer be originating small business loans themselves; instead, they will be creating a new ecosystem with co-branded small business lending initiatives with both Funding Circle and Opportunity Fund; small business loans will no longer be funded by LendingClub investors, instead Funding Circle and Opportunity Fund investors will be funding the loans; LendingClub president Steve Allocca said, “This move is part of a proactive shift in the evolution of the business model at LendingClub. We want to move towards offering a multi-sided platform to our members with several offerings, some of which we fulfill ourselves and others will be fulfilled by third parties.”. Source.