Lending Club

What Lending Club does

Happen Bank (formerly LendingClub) is a digital-first US bank serving more than 5 million members with personal loans ($1,000–$75,000, APRs 5.96%–35.99%), high-yield deposits (LevelUp Savings at 4.00% APY, LevelUp Checking with 1% debit cash back), auto refinancing, and home improvement financing. Founded in 2006 as one of the first peer-to-peer lending platforms and operating under parent Happen, Inc., the company completed a strategic transformation with the 2021 acquisition of Radius Bank for $185 million, becoming one of the first fintechs to own a US-regulated bank. As of Q1 2026, the company reported $11.9 billion in total assets, $10.2 billion in deposits, $2.7 billion in quarterly loan originations, $100 billion+ in cumulative loan originations since founding, and a CET1 capital ratio of 17.0%.

The platform is anchored by a proprietary AI underwriting engine trained on 150+ billion cells of credit data, with AI automating over 90% of loan issuance and supporting fraud detection, collections, document verification, and marketing. Distribution combines a direct digital application funnel (web and mobile app with a 4.8-star rating), embedded point-of-sale financing through the Wisetack partnership covering 40,000+ contractors, furniture retail financing via Wonder and FormPiper, and a LevelUp Checking product that drove a sevenfold increase in new account openings in Q3 2025. Revenue is generated through net interest income on balance-sheet loans funded by FDIC-insured deposits at a 3.60% cost of capital (producing a 6.28% net interest margin), origination and transaction fees on marketplace loan sales, deposit-related fee income, and institutional capital sourced via forward-flow agreements with Blue Owl (up to $3.4 billion) and BlackRock ($1 billion commitment through 2026).

Name

Lending Club

Legal name

Happen, Inc.

Website

https://lendingclub.com

Company type

Public

Founded year

2006

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Happen Bank (formerly LendingClub) is a digital-first US bank serving over 5 million members with personal loans, auto refinancing, home improvement financing, and high-yield deposits, powered by a proprietary AI underwriting platform trained on $100 billion+ of loan data.

Ownership category

akta.pro rank

Headquarters

HQ city

San Francisco

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Technology or R&D, Operations, Marketing or Sales, Infrastructure

Revenue model

1. Net Interest Income (NII): Interest income earned on loans held on balance sheet (personal loans, auto refinancing, home improvement loans) minus interest paid on deposits. Funding high-yield personal loans with low-cost deposits ($10.2B+ in deposits) generates net interest margin of approximately 6.28%. Deposit base (LevelUp Savings, LevelUp Checking, CDs) at competitive rates (4.00% APY savings) provides stable, lower-cost funding compared to wholesale capital.
2. Platform/Marketplace Fees: Transaction and origination fees charged on loans originated through the digital marketplace. Fee-based loan originations grew 33% year-over-year. AI-enabled automation reduces production costs, improving take-rate economics. Forward-flow agreements with institutional investors (Blue Owl up to $3.4B, BlackRock $1B commitment) provide capital for loan origination.
3. Deposit-Related Revenue: Revenue generated from the deposit gather business including savings accounts, checking accounts (LevelUp Checking with 1% cash back on debit), and CDs. Deposit growth to $10.2B+ provides funding for loan growth while generating fee income. The LevelUp Checking product drove a sevenfold increase in new account openings in Q3 2025.
4. Auto Refinancing: Revenue from auto loan refinancing products. Borrowers who refinance existing auto loans with Happen Bank generate origination fees and interest income. Average borrower saves up to $2,500 in potential interest charges based on Oct 2025–Mar 2026 data.

Pricing tiers

Go-to-market motion3 records

Distribution channels5 records

Marketing channels7 records

Core offering

LendingClub (now Happen Bank) operates as a US digital-first bank that originates personal loans, auto refinancings, and home improvement loans on its balance sheet, funded by FDIC-insured LevelUp Savings, LevelUp Checking, and certificate of deposit accounts. Customers apply online or via mobile, receive AI-driven underwriting decisions in minutes, and obtain funding within 24 hours, while earning cash-back rewards and high-yield deposit rates that integrate lending and banking in one account relationship.

Product overview

Happen Bank (formerly LendingClub) operates as a unified digital-first bank platform combining lending, deposits, and payments on a single technology infrastructure. The product ecosystem centers on Personal Loans as the core offering, supported by deposit products (LevelUp Savings and LevelUp Checking) that lower the company's funding costs, and extended through Auto Refinancing and Home Improvement Loans via the Wisetack partnership. Additional features including TopUp Loan, DebtIQ, Business Loans, Institutional Investing, and Financing Solutions extend the platform's functionality. Products interconnect through a unified mobile app where borrowers can manage loans, savings, and credit monitoring in one place, with cash-back rewards incentivizing on-time payments and direct deposit activity.

Differentiator

Problem solved

Functional benefit

Brands

• LevelUp Savings: High-yield savings account offering up to 4.00% APY with LevelUp rate for accounts receiving $250+ in deposits
• LevelUp Checking
• DebtIQ
• TopUp Loan
• Wisetack Partnership

Products and services

• Personal Loans Unsecured personal loans ranging from $1,000 to $75,000 with APRs from 5.96% to 35.99% and origination fees from 0% to 8%, applied for online with AI-driven decisions in seconds and funding as fast as 24 hours; targeted at consumers consolidating credit card debt or financing large purchases.
• LevelUp Savings High-yield FDIC-insured savings account offering up to 4.00% APY (LevelUp Rate) when the account receives $250+ in monthly deposits, with a 3.00% APY standard rate otherwise and no minimum balance.
• LevelUp Checking FDIC-insured checking account offering 1% cash back on grocery, gas, and pharmacy debit purchases, 2% cash back on on-time personal loan payments, and Early Payday access up to 2 days early, all requiring direct deposit.
• Auto Refinancing Auto loan refinancing product that allows borrowers to replace existing higher-rate auto loans with a Happen Bank loan at a lower APR, applied for online with a streamlined experience.
• Home Improvement Loans Point-of-sale home improvement financing up to $65,000 with real-time credit decisions delivered through the Wisetack platform integrated with 40,000+ contractor partners nationwide, targeting the $500 billion US home improvement financing market.
• Business Loans Commercial lending products for small business owners, accessible through happen.com as part of the digital bank's business credit offerings.
• Institutional Investing Investment products and data feeds that give institutional investors access to LendingClub's loan marketplace and consumer credit portfolios, including forward-flow purchase opportunities.
• Financing Solutions B2B financing solutions for merchants and retailers enabling embedded installment financing at point of sale, including the Wonder/FormPiper integrated multi-tier consumer financing platform for independent furniture retailers.
• Certificates of Deposit (CDs) FDIC-insured certificates of deposit offering up to 4.15% APY on 8-month and 11-month terms, materially above the national 1-year CD average of 1.52% per FDIC data.

Quantifiable outcome

• 40% fewer delinquencies with AI-driven underwriting vs traditional methods
• +6 more outcomes

Named customers1 record

Segments4 records

Ideal customer profiles4 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration2 records

AI capability4 records

Feature4 records

Partnerships

Three partnerships are on record, tiered core.

• WisetackcoreChannel Partner/ Reseller/ Distributor · 27 April 2026Inaugural partnership for home improvement financing. LendingClub underwrites and originates loans up to $65,000 through Wisetack's embedded platform integrated with over 40,000 contractors. Homeowners receive real-time credit decisions at point of sale; contractors receive immediate funding. LendingClub also made an equity investment in Wisetack to accelerate partnership growth. Targets the $500 billion U.S. home improvement financing market.
• Wonder (GigaCloud Technology)coreChannel Partner/ Reseller/ Distributor · 20 January 2026Strategic partnership with Wonder and FormPiper delivers an integrated multi-tier consumer financing platform to independent furniture retailers nationwide. Wonder's in-store digital kiosks and mobile apps combined with FormPiper's fintech routing technology and LendingClub's lending solutions enable smaller retailers to access sophisticated multi-lender financing. Soft-launched Q4 2025, now rolling out across Wonder's retail technology network.
• Radius BankcoreOthers · 1 February 2021Acquired Radius Bank in February 2021 for $185 million, obtaining a national bank charter. This strategic acquisition transformed LendingClub from a marketplace lender into a regulated digital bank. Radius Bank brought $2.1 billion in deposits and bank charter infrastructure, enabling LendingClub to hold loans on balance sheet and offer deposit products. This acquisition was the foundation for the rebranding to Happen Bank.

Scale indicators15 records

Recent moves9 records

Expansion highlights6 records

Emerging players

• Affirm: Point-of-sale installment lending platform with embedded merchant integrations. Comparable on the embedded financing thesis (Wisetack/Wonder partnerships) and AI underwriting, but focused on BNPL rather than unsecured personal loans.

Direct peers

• Prosper Marketplace: Pioneer peer-to-peer / marketplace personal loan platform. Closely comparable origination model and target borrower, though Happen has differentiated by moving to balance-sheet lending via its bank charter and adding deposit products.
• Best Egg: Digital personal loan lender focused on debt consolidation and home improvement financing. Closely comparable on product mix and borrower segment, with embedded home improvement distribution overlapping Happen's Wisetack channel.
• SoFi Technologies: Direct competitor in the digital bank / personal lending space targeting the same 'Motivated Middle' demographic with personal loans, high-yield savings, checking, and investing. Closely comparable business model combining deposit-funded balance-sheet lending with a technology-led D2C funnel.
• Upgrade: Digital lender offering personal loans, auto refinancing, and high-yield savings plus checking. Closely comparable product set and target demographic, with mobile-first D2C distribution and recent move into credit cards.
• Rocket Loans: Online personal loan subsidiary of Rocket Companies. Comparable product (unsecured personal loans $2K–$45K) and D2C funnel, with mortgage cross-sell potential similar to Happen's home improvement positioning.
• OneMain Financial: Large non-prime and near-prime personal installment lender with hybrid branch/digital model. Comparable on unsecured personal loan underwriting for credit-active consumers, though more reliant on physical distribution.
• Upstart Holdings: AI-driven consumer lending platform using alternative data for credit decisions, with a marketplace model and bank partnership. Highly comparable on the AI underwriting and personal loan product, though Happen now holds loans on balance sheet via its own bank charter.

Broad incumbents

• Marcus by Goldman Sachs: Established bank-owned digital lending and savings platform offering unsecured personal loans and high-yield savings. Overlaps directly on Happen's core personal loan and deposit products, but operates as a division of a universal bank with broader balance sheet support.
• Discover Financial Services: National commercial bank and direct-to-consumer credit card issuer with a personal loans business. Comparable in offering deposits (savings), credit cards, and personal loans to mass-affluent consumers, but at significantly larger scale and via a bank holding company.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks7 records

Key highlights6 records

Customer concentration

• Xx.com/happenbank
• Facebookfacebook.com/happenbank
• LinkedInlinkedin.com/company/happen-bank
• Instagraminstagram.com/happenbank

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles13 records

Subsidiaries1 record

Funding overview

Funding rounds16 records

Investors24 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A3 records

Investments2 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Lending Club