We are at a point in time when it is apparent that the old paradigms have to shift a bit. And no one would argue that the banking industry is long overdue for a major change. It looks like the Lending Club IPO may just serve to bring things to a crossroads with regards to how people obtain financial services in this country. New payment processors, cutting edge technologies and a new generation of people looking for banking services have all led up to what may be a very big transformation for the banking/financial industries before we know it. Some people are even calling Lending Club the forefront of a financial revolution.
The Lending Club IPO raised $870 million in capital venture. This helps the company to grow, become more accessible and to be taken serious in today’s financial market…
The Growth of Lending Club
When you stop to take a look at the hard numbers, it is easy to see why so many people are excited about the future potential of Lending Club. Between 2012 and 2013 the company grew by an astounding 189 percent. Of course, that growth is small compared to the total $680+ billion dollars in consumer credit card market. Still, the extra capital that Lending Club has been able to raise in recent years will allow the company to grow at a rate that should make it very competitive, very soon.
Lending Club to Become More Accessible
To really get a good idea about how Lending Club is doing, we have to take a look at their lending volume thus far. To date, Lending Club has assisted over 450,000 customers. That number, however, doesn’t give full justice to how well this company is doing with their target customer base. It appears that the company has been getting great word of mouth amongst millennials and those clients who use this lending service absolutely love it. That’s not good news for the banking industry, as we all know people are more apt to talk about consumer experiences that they weren’t happy with. So the big banks may continue to get trashed by everyday American consumers, while people spout off about how much this new financial company is offering them.
Proving Lending Club to the World
In order for Lending Club to take off, like some financial analysts think that it will, it is important for the company to earn validation in the financial sector. This is often difficult for companies that are customer-facing and highly regulated. However, other companies in the same industry, like Airbnb and Uber have already shown that if the numbers are there big changes can occur in this industry. When Lending Club gains traction, the implications could reach very far and they may very well shape the way that people approach financial services in the future. This is not something that will happen overnight, but if Lending Club continues on the path it has been on for the past few years, we can all expect to hear big things from this company.
It is no secret that people are fed up with the service they get from traditional banks. As the world shifts to allow millennials to step up to the plate, both personally and professionally, we can expect to see massive shifts in the way that people earn, save, invest and borrow money. Companies like Lending Club are sure to be there, leading the way for a new generation. And those of us who are not all that young anymore may still stand to gain from the big changes that are sure to shake up the banking industry before too long. Either way, it will be interesting to see how all of this shakes out for Lending Club and other new financial service providers.