Author Topic: Lending club debit card?  (Read 1856 times)

JerryB

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Lending club debit card?
« on: December 26, 2012, 02:52:18 PM »
As lending club continues to grow and with the appointment of Larry Summers to LC board an IPO seems a forgone conclusion. Which is great for everyone in my opinion the more mainstream LC becomes the more loans I have to choose from. Also as LC grows the less I worry about the whole company folding up and filing bankruptcy.

What I'm really curious about though is what LC investors see for the future of LC in a post IPO world with money pouring in from all avenues? Do you think lending club will evolve more bank like services? Possibly letting borrowers open up savings/checking accounts. Or possible letting investors own a debit card based on account balance. I truly hope the relationship between small investor and borrower doesn't change but I feel that lending will evolve I'm just not sure how.. Your thoughts?
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rawraw

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Re: Lending club debit card?
« Reply #1 on: December 26, 2012, 04:45:40 PM »
As lending club continues to grow and with the appointment of Larry Summers to LC board an IPO seems a forgone conclusion. Which is great for everyone in my opinion the more mainstream LC becomes the more loans I have to choose from. Also as LC grows the less I worry about the whole company folding up and filing bankruptcy.

What I'm really curious about though is what LC investors see for the future of LC in a post IPO world with money pouring in from all avenues? Do you think lending club will evolve more bank like services? Possibly letting borrowers open up savings/checking accounts. Or possible letting investors own a debit card based on account balance. I truly hope the relationship between small investor and borrower doesn't change but I feel that lending will evolve I'm just not sure how.. Your thoughts?
Being a bank is A LOT different than what they currently are.  They'd have to start being regulated by the FDIC, OCC, or the Federal Reserve.  Their growth would be bounded by deposit accounts.  They aren't going to become a bank, it doesn't make any sense.

I have thought that if they have enough money going through the system, credit cards which result in installment notes of the balances would be cool.   I'm not quite sure how that would be structured, though.

Keltset

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Re: Lending club debit card?
« Reply #2 on: December 26, 2012, 08:38:46 PM »
I agree it would be some time before that ever, if ever, happened. They are a servicing company and not a bank and they aren't really acting as anything other than a glorified servicing agent. They don't walk or talk like a bank- This isn't even their business model. They act as a market maker or a better way of describing it would be the bookie (equal bets on both sides my friends) at a sports book here in Nevada.... Now I wouldn't be to surprised to see new forms of lending products made available- Potentially something close to a credit card with pre-funded or close to pre-funded / float through auto-fulfill system of line of credit. The possible new products though are huge- Look at what payday loan companies are starting to do to no longer be a "payday" loan company but still offer the same type of service...