LendingClub Expands Into Home Improvement After Q1 Originations Jump 31%

LendingClub saw growth across its business in the first quarter as it prepares to rebrand to Happen Bank and continues to expand its offerings into areas such as home improvement.

“All of our consumer businesses showed strong growth, supported by the compelling experience and value we deliver,” LendingClub Chief Financial Officer Drew LaBenne said Monday (April 27) during the company’s first quarter earnings call.

During the first quarter, LendingClub achieved 31% year-over-year growth in origination volume, which reached $2.7 billion, and 14% year-over-year growth in deposits, which hit $10.2 billion, according to a Monday earnings release.

The company attributed the originations growth to strong borrower demand and its marketing and product initiatives, according to a presentation release Monday.

LendingClub CEO Scott Sanborn said during the earnings call that the company’s offerings are appealing to the “motivated middle” of consumers who have high FICO scores, high income, and a focus on making progress.

“Our strong funding and proven ability to underwrite loans through a seamless experience is extensible to other categories where the motivated middle is able to make responsible use of credit through our major purchase finance business,” Sanborn said. “We’re increasingly present with them at the point of decision, whether they’re getting braces for their kids or trying to start a family with fertility treatments.”

LendingClub’s LevelUp Savings account has grown to 80,000 accounts since its launch in August 2024, driven in part by a competitive base APY and a higher rate for members who deposit at least $250 per month. Seventy percent of account holders are meeting that threshold, according to the presentation.

The company’s LevelUp Checking product has outperformed the product it replaced in June, with a sixfold increase in account openings, per the presentation.

Sanborn said during the call that “our lending and banking products work together in a system aligned by design to deliver more value for both members and our business.”

LendingClub announced in a Monday press release that it has begun underwriting and originating loans in the $500 billion-per-year home improvement market through a partnership with Wisetack, an embedded platform used by more than 40,000 contractors.

Because LendingClub’s underwriting system enables real-time credit decisions, homeowners can get instant offers and real-time approvals, while contractors can get immediate funding and better close rates, per the release.

“Home improvement represents a powerful new opportunity to attract and engage the motivated middle in moments that matter and allows our members to use credit responsibly to add value to their home,” Sanborn said during the call. “Beyond Wisetack, we’re seeing strong interest from additional partners, which gives us confidence in the category’s growth over time.”

LendingClub announced April 22 that it will mark its multiyear transition from online lender to diversified full-service bank by rebranding as Happen Bank this summer.

The new name signals action, progress and forward momentum, reflecting its offering of lending and banking products, decisions in minutes and transparent terms, the company said when announcing the change.

“Our new brand better reflects what we have become and why we exist: to clear the way for people going places,” Sanborn said during the call.