LendingClub’s LevelUp Checking Fuels Membership Growth and Loan Engagement

LevelUp Checking Accelerates LendingClub’s Digital Transformation

LendingClub Corporation’s LevelUp checking product is reportedly driving significant growth in account openings and borrower engagement, according to recent executive comments during an analyst conference call. Sources indicate the new checking product has generated a 7x increase in account openings compared to the company‘s previous checking offering, with nearly 60% of new accounts being opened by existing borrowers.

LevelUp Checking Accelerates LendingClub’s Digital Transformation
Enhanced Member Engagement and Loan Considerations
Financial Performance and Market Position
Competitive Landscape and Underwriting Standards
Investor Appetite and Long-Term Strategy

Enhanced Member Engagement and Loan Considerations

The report states that members are responding positively to the LevelUp checking features, particularly the 2% cash back incentive for on-time payments. In a recent survey cited by executives, 84% of respondents indicated they were more likely to consider a LendingClub loan given this cash back offer through LevelUp checking. Analysts suggest this integration of banking and lending products is creating stronger customer relationships and cross-selling opportunities.

Digital engagement metrics have shown substantial improvement, according to the analysis. Monthly app logins from borrowers have increased by nearly 50%, and with this heightened engagement, an increasing portion of repeat loan issuance is now coming through the mobile application. This digital acceleration appears to be strengthening LendingClub’s position in the competitive fintech landscape.

Financial Performance and Market Position

During the conference call, company executives reportedly highlighted several key financial metrics. Marketplace revenues increased 75% to $108 million, while structured certificate sales topped $1 billion. The LevelUp savings product has accumulated $3 billion in balances and represented the bulk of deposit growth thus far into 2025.

Total deposits ended the quarter at $9.4 billion, showing a slight decrease from the previous year. According to the CFO, this change was primarily attributable to a $100 million decrease in brokered deposits, which was mostly offset by an increase in relationship deposits. The company‘s held-for-sale extended seasoning portfolio grew to over $1.2 billion, consistent with their strategy to expand the balance sheet.

Competitive Landscape and Underwriting Standards

When discussing the competitive environment, CEO Scott Sanborn noted that as interest rates shifted, LendingClub’s competition dynamics have evolved. “We were competing more with banks and less with FinTechs. I’d say now we’re competing a bit more with FinTechs and a little bit less with some of the banks,” Sanborn stated, while emphasizing that these competitive shifts are not affecting the company’s underwriting standards.

Credit quality showed modest improvement, with net charge-offs declining to 2.9% as credit trends modernize. The company has reportedly restricted underwriting to certain consumer segments, including those earning less than $50,000 annually, who currently represent only about 5% of originations. Similar restrictions apply to student loan borrowers, according to the executive comments.

Investor Appetite and Long-Term Strategy

The CFO indicated that investor appetite for LendingClub’s loan products remains “very strong” across various investment vehicles, including structured products, rated products, and whole loans. This sustained demand from both consumers and loan investors, combined with increased marketing efforts, has contributed to the company’s loan growth.

Sanborn emphasized the company’s long-term perspective, stating “We are absolutely in this for the long game,” suggesting a strategic focus on sustainable growth rather than short-term market fluctuations. The integration of banking services through products like LevelUp checking appears to be central to this long-term strategy, creating a more comprehensive financial ecosystem for members.