Lending performance data solutions provider Brismo is integrating its technology into the LendingClub platform, enabling lenders to analyze the performance of their portfolios.
In a press release issued on Thursday (Feb. 21), Brismo announced that it is using granular loan data from LendingClub to offer standardized performance metrics for lenders on the platform. Financiers can analyze the performance of LendingClub loans against the performance of loans issued on other alternative lending platforms to compare risk and returns.
The company noted that lenders can assess performance based on location, asset types and other characteristics, allowing them to improve decision-making and investing. The solution provides insight into late payments, including defaults and recovery performance, net returns and loss coverage, return projections, outbound lending rates, loan terms and more.
“Facilitators can improve diversification of funding if they can communicate performance in a format that is easy to understand to the widest possible audience,” explained Brismo Founder and CEO Rupert Taylor in a statement. “We look forward to working with LendingClub to help them deliver best-in-class disclosure of their asset performance.”
“LendingClub continuously looks for ways to improve transparency in the marketplace and the experience for its investors, and this partnership with Brismo marks another important step along that journey,” said LendingClub Chief Capital Officer Valerie Kay in another statement. “Providing third party-verified performance measurement that is applied consistently throughout the industry delivers improved insight and transparency for those seeking to learn more about consumer credit – the asset class that LendingClub has helped deliver to the masses.”
The companies did not note whether the loan performance analytics will include small business loans issued via the LendingClub platform.
Earlier this month, LendingClub posted double-digit growth in loan originations for the fourth quarter of 2018, though overall quarterly performance missed analyst expectations. Loan originations were up 18 percent, reaching $2.87 billion, the company said.
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