LendingClub will not proceed with many business operations in 2022, including the yacht loan business, according to CEO Scott Sanborn.
“Yacht loans are simply not in line with our mission to help average Americans on their path to financial health, and we plan to grow our auto refinance business to replace it,” Sanborn said in a company blog post on Monday (January 4).
In addition, the company will not move forward with all of its relationships with some fintech companies, requiring some of them to change their activities or operations to “conform to contractual expectations and obligations.” Some partnerships will be terminated completely.
“As part of an ongoing dialogue with these partners, we have discussed transition plans or operational changes that could affect the services available to these partners and their customers,” Sanborn added.
LendingClub says he has a “unique perspective” in the space, having worked for 15 years as a FinTech company, using a partner bank model. Now, the company says it operates as a fintech, bank, and partner bank.
LendingClub also recently announced the introduction of auto refinance loans for the first time in 40 states. PYMNTS writes that this will reach approximately 94% of the population in the United States.
Read more: LendingClub runs automatic refinancing across 40 states, reaching 94% of the US population
The average borrower will save about $4,000 over the course of the debt. LendingClub was first launched in California in 2016, and the company’s auto refinance product is said to have completed the loan in three days instead of several weeks.
Americans hold about $1 trillion in auto loan debt. This makes the company the fourth largest share of family debt after mortgage loans, home equity lines of credit and student loans.
About 66% of LendingClub members have a car loan. The average annual percentage rate (APR), according to the company, is about 5% lower than previous loans.