Business Model of Lending Club

created by [email protected]

Key Partners

  • WebBank
  • LC Advisors
  • Borrower Sources

WebBank

Allow Lending Club to meet regulatory requirements needed to make its platform available to borrowers nationwide.

LC Advisors

Provide private investment funds sevice for accredited investors and qualified purchasers

Borrower Sources

Mint.com, Credit Sesame, consumer product companies

Key Activities

  • A platform

A platform

To match borrowers and lenders based on credit information and borrowers' needs

Value Proposition

  • Lenders
  • Borrowers

Lenders

Need: Know the borrower and the loan better Ans: Provide public and detailed info about the borrower and loan Need: Provide partial fund Ans: Able to make commitments to as many Member Loans as they wanted in increments of $25 Need: An alternative investment for accredited investors Ans: Funds like LCA

Borrowers

Need: Unsecured personal loans Ans: Lending club Need: Low-interest rate Ans: The well-defined credit model and electronic and highly automated operation

Customer Relationships

  • Borrowers
  • Lenders

Borrowers

1. Provide potential loan information 2. Arrange notes issue

Lenders

1. Collect and rate information 2. Provide Loans 3. Collect payments through ACH

Customer Segments

  • Lenders
  • Borrowers

Lenders

1. Normal Members 2. Institution Investors 3. Accredited investors and qualified purchasers

Borrowers

Rate from A1(High) to G5(Low)

Key Resources

  • Credit information
  • A team of remarkably high caliber professionals and directors
  • Partnership

Credit information

Credit information is what the grading process and the matching process based on, and also helps further customer analysis.

A team of remarkably high caliber professionals and directors

Partnership

Channels

  • FaceBook
  • Mint.com, Credit Sesame and Pool Corp

FaceBook

Users get to know each other through FB

Mint.com, Credit Sesame and Pool Corp

Attract borrowers by partnership with financial service provider

Cost Structure

  • Fix cost
  • Operation cost

Fix cost

1. General & Administrative

Operation cost

1. Notes and Certificates operation fee 2. Loans Payable (Default) 3. Engineering cost

Revenue Streams

  • Fee income from borrowers and investors

Fee income from borrowers and investors

Fees included loan origination fees to borrowers and a 1% charge on all payments made to investors including principal, interest, and late fees. In addition, Lending Club charged a monthly fee to investors in LCA funds in lieu of a servicing fee.

Brainstorming Space