LendingClub, an online marketplace that connects borrowers and investors, has launched a new marketplace called LCX with the intention of drawing a larger swath of institutional investors to the platform.
LendingClub said the new marketplace offers “dynamic” pricing and same-day settlement of “fully funded whole loans.” The service significantly reduces the time it takes to deploy capital, from several weeks to a single day.
"This is a huge step forward in the evolution of unsecured consumer loans as an asset class," said Valerie Kay, chief capital officer of LendingClub. "LCX joins other LendingClub innovations such as CLUB Certificates and the Select Plus Platform to offer new industry-leading products that meet the needs of our growing and diverse investor base."
LCX will also offer analytics in the form of real-time insights into loans, and also serves up an infrastructure for creating a secondary market to help boost liquidity and the worth of mainstream assets.
LendingClub said this is an improvement in how consumer loans have historically been done.
"As an early adopter of innovative financial technology, we're thrilled to be one of LendingClub's pilot partners as they continue to deliver new ways to access consumer credit," said Elliott Lorenz, CEO and co-founder of Edge Focus Partners. "This is a great example of LendingClub listening to and building new solutions for its investors who want dynamic pricing and faster, easier ways to deploy capital. A natural evolution of any asset class is enhanced liquidity through secondary markets, and this is a major step in that direction."
LCX is the latest LendingClub marketplace platform, and follows the release of other recent products like the Select Plus Platform. The company now has four platforms offering loans to institutional investors: Scale, Select, Select Plus and LCX. Scale and Select were launched in 2017.