Last month’s bankruptcy of Silicon Valley Bank (SVB) shook the American financial sector.
LendingClub, a San Francisco-based FinTech lender that got a charter to operate as a direct-to-consumer (DTC) bank, capitalized on the turmoil by amassing around $1 billion in new client deposits.
LendingClub’s CFO Drew LaBenne advised investors during the company’s first quarter 2023 earnings call on April 26 that overall deposits climbed by nearly 13%, or $826 million.
Client deposits at LendingClub were over $6.3 billion at the end of the previous fiscal quarter, and they had grown to more than $7.2 billion by the end of the most recent fiscal quarter on March 31, 2023.
“We achieved a great quarter driven by our strategic advantages,” said LendingClub CEO Scott Sanborn.
“While we expect continued industry and macro headwinds, these significant advantages, along with our expanding online consumer deposit franchise and high-yielding short-duration assets, provide us with a range of options to navigate the current macro environment as we build toward an ambitious future for the company and our growing membership base,” he added.
Following the failures of Silicon Valley Bank and Signature Bank, which resulted in $119 billion in customer withdrawals from smaller banks, LendingClub, Capital One, and Discover began offering signing bonuses to customers who opened new accounts or made monthly deposits.