LendingClub wins BIG after SVB collapse 🤑; Visa is still bullish on crypto 👀; FinTech funding crux in 4 charts 📊
FinTech is Eating the World, 27 April
Hey Everyone,
TGIF! What a week it was… 🤯 And it’s not over yet as on today’s radar we have LendingClub that wins BIG after SVB collapse (+2 more reads on winners & losers from SVB’s fallout), Visa which is still bullish on crypto (+ how it did the biggest thing in payments this year), and FinTech funding crux in 4 charts (latest data and what’s next). Let’s jump straight into the cool stuff 🌶
LendingClub wins BIG after SVB collapse 🤑
Following the money 💸 The collapse of Silicon Valley Bank (SVB) was one of the biggest banking failures in the United States history that disturbed the US and even the global financial system last month.
But not everything is bad as some market participants are benefiting big time after the Startup Bank went belly up.
In case you missed it: The rise and fall of Silicon Valley Bank 🏦
More on this 👉 One of them is the San Francisco-based LendingClub LC 0.00%↑. A FinTech lender which became a direct-to-consumer (DTC) bank by acquiring a charter, was able to capitalize on that turmoil and capture nearly $1 billion in new customer deposits. That’s a lot! 🤯
LendingClub’s CFO Drew LaBenne told investors on the first quarter 2023 earnings call that the firm saw total deposits increase by nearly 13%, or $826 million.
At the end of the last fiscal quarter, LendingClub’s customer deposits stood at around $6.3 billion, and by the close of the most recent fiscal quarter on March 31, 2023, they had risen to more than $7.2 billion.
How we got here? 🤔 As reported by PYMNTS, LendingClub, along with Capital One and Discover, began offering signing bonuses for customers who started new accounts or regularly deposited funds after the collapses of SVB and Signature Bank which led customers to pull $119 billion from smaller banks.
This clearly paid off.
✈️ THE TAKEAWAY
Looking ahead 👀 LendingClub joins a small group of winners that are celebrating the collapses of SVB & Signature. Zooming out, this reminds us about two very important things. First, medium and big banks are only going to get bigger while smaller ones will be fighting for survival. Second, the banking crisis is far from being over. So buckle up!
More here: The ripple effects of Silicon Valley Bank collapse 🌊