Researchers at Columbia Business School Find Lending Club to be a Rational Alternative to Mainstream Investments

Behavioral economists conclude peer-to-peer investors follow traditional investment patterns


Sunnyvale, CA - January 19, 2010 - LendingClub.com, the world leader in peer-to-peer lending, announced today that according to research conducted by behavioral economists from Columbia Business School, Lending Club investors exhibit rational decision-making behavior when it comes to their investments. 

"We are excited, but not surprised, by the study's findings. Over the past year, we have noticed a strong, positive shift:  peer-to-peer lending is now seen as a reasonable, alternative asset class," said Patrick Gannon, Lending Club's Senior Vice President of Investor Services. "We believe people see the value of diversifying into a new asset class that doesn't move in lockstep with the broader market," noted Mr. Gannon. 

The study states that investors are acting rationally in foregoing other outside investment opportunities and replacing them with peer-to-peer lending opportunities.  Lending Club believes that peer-to-peer opportunities are becoming an integral part of an investors overall wealth management plan.  

The published report titled: Risk Aversion and Wealth: Evidence from Person-to-Person Lending Portfolios, estimates risk aversion from the actual financial decisions made by a sample of 2,168 U.S. investors participating in a peer-to-peer lending platform. The data was provided by Lending Club. The report can be found at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1507902 

About Lending Club

LendingClub.com is the world leader in peer-to-peer lending (based on dollar amount of loans issued each month throughout 2009), bringing together investors and creditworthy borrowers.  Lending Club eliminates the high cost and complexity of traditional banks to offer borrowers better rates and investors better returns. Lending Club won the Webby Award in 2008 for the "Best Banking Website" and has been nominated for "Top 100 Innovators" by The Industry Standard. It was recently recognized as one of the 20 "Breakthrough Ideas for 2009" by Harvard Business Review. Founded in 2006, Lending Club is headquartered in Redwood City, CA. More information is available at: http://www.lendingclub.com.

Lending Club Notes are only offered by a prospectus filed with the SEC which contains the risks and uncertainties related to any investment in the Notes.  Currently only residents of the following states may invest in Lending Club notes: CA, CO, CT, DE, FL, GA, HI, ID, IL, KY (accredited investors), LA, ME, MN, MO, MS, MT, NH, NV, NY, RI, SC, SD, UT, VA, WA, WI, WV, or WY.

Loans are not issued in IA, ID, IN, KS, ME, MS, NC, ND, NE, or TN. Loans are issued by WebBank, an FDIC insured Utah chartered industrial bank located in Salt Lake City, Utah. Borrower must be a US citizen or permanent resident and at least 18 years old. Valid bank account and social security number are required. All Loans are subject to credit approval.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of any securities of LendingClub in any state or other jurisdiction in which such offer, solicitation, or sale would be unlawful.

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