LendingClub Corporation (NYSE:LC) Q2 2023 Earnings Call Transcript

99% of our customers have credit cards. We know what kind of cards they have. We know what they use them for. So that’s certainly something when conditions allow that we would be interested in exploring and we think that our customers would be open to.

Artem Nalivayko: Great. Thank you. And the second question is, would you consider signing any funding agreements or forward flow agreements and announcing these publicly to drive further origination growth?

Drew LaBenne: Yes, sure. I’ll take that one. I mean, first thing I’d note is we sign agreements all the time with our potential — with our loan buyers. And oftentimes, when we sign those agreements, there’s financial incentives attached to them where if a buyer continues making purchases all the way through the agreement, there’ll be some type of rebate. And as you can see from our Q3 guidance, it’s possible that one of those rebates is going to come back to us. It’s in fact one of the bank buyers — a couple of bank buyers stopped their purchasing. So, we like to structure deals that way that have a longer-term flow, but also have some financial incentives within them. In terms of structuring something with long-term committed capital, I think first of all, those difficult — those agreements are difficult.

And in this environment, they’re going to be very expensive to set up as well, and you never have a 100% certainty that they would be fulfilled in a much more difficult environment. So, we’re not sure now is the right time just to lock in an extended agreement of economics that might be unattractive to us and our shareholders.

Artem Nalivayko: All right. Great. Thanks, Drew. So with that, we will wrap up our second quarter earnings conference call. Thanks for joining us. And if you have any questions, please feel free to email us at ir@lendingclub.com.

Operator: That will conclude today’s conference call. Thank you all for your participation. You may now disconnect your line.