Recent Javelin Analysis Reviews Social Lending Investments with Lending Club
Key Findings Point to Lender members Earning an Average Return of 9.05 Percent
SUNNYVALE, CA - January 22, 2009 - LendingClub.com, an online social lending network where people can borrow and invest money, announced today the availability of a whitepaper summarizing a recent analysis conducted by Javelin Strategy and Research. The analysis focuses on the lender members' investments through LendingClub.com between June 2007 and December 2008.
"The value of social lending to our borrowers is readily apparent by simply comparing interest rates; however calculating the benefit to our lender members is more complicated because it depends on loan performance over time," said Lending Club CEO and founder Renaud Laplanche. "Javelin's findings validate the value our lender members have captured in a challenging environment—and that is something we are happy to have made possible."
Javelin's analysis—commissioned by Lending Club—delved into the lending side of peer lending and specifically into the loans originated on lendingclub.com during the time period between June 2007 and December 2008. Highlights from Javelin's analysis include:
- During the time period Lending Club facilitated $23.6 million in loans.
- The average lender member return was 9.05 percent, with a median return of 10.48 percent, based on a Weighted Average Return on Invested Capital (WAROIC)*.
The "Lending Club Investment Analysis" whitepaper prepared by Javelin Strategy and Research is available free of charge at: http://www.lendingclub.com/public/content/press/doc/javelin.pdf. Lending Club Notes are offered by prospectus only. Lending Club paid Javelin Strategy and Research a total of $23,500 to perform this analysis.
*Weighted Average Return on Invested Capital (WAROIC): A measure of performance that is based on a comparison of actual cash flows and invested capital, accounting for current loans, prepayment, defaults and late payments. See more information about the WAROIC formula here.
About Javelin Strategy and Research
Javelin is the leading independent provider of quantitative and qualitative research focused exclusively on financial services topics. Based on the most rigorous statistical methodologies, Javelin conducts in-depth primary research studies to pinpoint dynamic risks and opportunities. Javelin helps its clients achieve their initiatives through three service offerings, including syndicated research subscriptions, custom research projects and strategic consulting. Javelin's client list includes some of the largest banks, credit unions, card issuers, and technology enterprises in the financial services industry.
About Lending Club
LendingClub.com is an online social lending network where people can borrow and invest money at attractive rates. Lending Club won the Webby Award 2008 for the "Best Banking Website" and has been nominated for "Top 100 Innovators" by The Industry Standard. Lending Club is headquartered in Redwood City, CA. More information is available at: http://www.lendingclub.com.