LendingClub Corporation (CL – Free Report) has extended the capabilities of its electronic trading platform, LCX, to include LCX Link. The addition will allow institutional investors to automatically buy, sell and settle loan transactions on the LCX platform without the need for technology infrastructure or the ability to establish connectivity.
LCX is an industry-unique platform that uses technology and leverages the LendingClub Marketplace to deliver loans to investors by matching their preferences and specific investment goals. LCX also eliminates traditional manual processes by offering a digital platform. The technology enables dynamic pricing of loan sales and provides the ability to sell new loans above par. Innovation will increase access and make loan transactions transparent.
Previously, LCX could only be used through an API, but with the launch of LCX Link, banks and other institutional investors can easily access and purchase loans that meet their risk-return profile, regardless of their internal technology infrastructure.
Clarke Roberts, Vice President of Market Services at LendingClub, said: “The efficiency that we enable, combined with our scale, increases accessibility and improves transparency for investors, which ultimately leads to new and better products. competitive for our members. “
LendingClub expects to execute $ 2 billion in total loan sales through LCX by the end of the current quarter.
Additionally, the company plans to expand LCX in the fourth quarter of 2021, with the goal of helping client-to-client portfolio sales in its secondary market. It will provide investors with an easy way to sell LendingClub loans to other investors on the platform, thereby increasing the liquidity of LendingClub’s short term loans.
Management said, “We continue to leverage technology to grow our market, and LCX Link is a key capability that has helped attract many investors who are happy with the speed at which we are innovating to increase access to this. asset class â€.
The stock has jumped 80.4% in the past three months, against industry growth of 1%.
Image source: Zacks Investment Research
Currently, LendingClub carries a Zacks Rank # 2 (Buy). You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.
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