Lending Club Taps Community Banks

San Francisco-based peer-to-peer (P2P) loan network Lending Club took a step toward diversifying its asset portfolios on December 11 when it announced it would begin selling its loans to community banks, the Finovate indicated.

Lending Club has inked agreements with seven small banks, which now account for 10 percent of its financing. The blog post suggests that this is part of Lending Club’s plan to expand its service, one that that could give it the opportunity to compete against larger banks in the space.

To date, Lending Club has made $3 billion in loans and is looking to expand its small business offerings.

For more on P2P loan use in the U.S., read our companion report here.

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