OCC approves LendingClub's Radius acquisition

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By Jennifer Kang
05 Jan 2021

LendingClub has received approval to acquire Radius Bank from the Office of the Comptroller of the Currency, completing one of the last few steps left before it can become a national bank. Under the incoming Joe Biden-led US administration, more fintechs will look to gain bank status to avoid regulatory headache and hefty costs attached to being a non-bank lender.

LendingClub shocked the market last year after announcing its acquisition of Radius Bank for $185m, a Boston-based federal savings association. Upon final approval from the Federal Reserve, LendingClub will become the first ABS fintech issuer to own a bank. 

The bank partnership model has been the ...

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