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Anytime a company with a disruptive business model reports record earnings, it investors need to take notice.

That’s exactly the case with LendingClub LC, a rapidly growing fintech company that is changing the way that people think about consumer finance.

LendingClub stock has rallied over 331% year-to-date in 2021 and could be in for even more upside after a big Q3 EPS beat, which is why it’s a name that should definitely be on your radar going forward.

LendingClub has actually been around since 2007, but the company’s latest changes are what should excite investors the most.

The company recently became the first U.S. fintech company to acquire a bank, which is a statement of intent that opens up a world of new possibilities.

LendingClub acquired leading online bank Radius and obtained a bank charter earlier this year, which has helped the company reduce its funding costs and expenses in a big way.

If you’ve ever tried to obtain a personal loan before, you’re probably familiar with some of the downsides.

Jumping through hoops so that a bank will provide approval, taking hits on your credit score for checking out different lenders, and paying high interest rates used to be a huge part of the process.

That’s why LendingClub stock stands out as a potential long-term winner in the consumer finance industry.

The company has developed America’s largest lending marketplace by connecting borrowers with investors to create a simple and straightforward way for people to get consumer loans.

Here are a few reasons why the company stands out.

The Premier Destination for Online Personal Loans

While there are plenty of options out there for consumers needing online personal loans, most people are going to go with the strongest name in the industry.

That’s particularly true given how many scams and cyber threats exist today.

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LendingClub’s online loan marketplace is a trusted name for both borrowers and investors, and has helped more than 3 million members borrow $60 billion in personal loans to date, giving it one of the strongest market positions today.

There are several qualities that make LendingClub the premier destination for online personal loans.

First, the company’s platform makes it incredibly easy for consumers to obtain the financing they need in order to save money, pay down their debt and better manage their finances.

It takes minutes to apply for a customized loan, and selecting a loan offer based on the rate, term and payment options a consumer prefers means that they have plenty of flexibility during the process.

LendingClub’s platform leverages artificial intelligence to create a LendingClub grade, which in turn delivers a range of interest rates to borrowers.

Since LendingClub doesn’t have any physical locations or branches, it has low operating costs and can pass savings onto borrowers in the form of low interest rates.

Other benefits of LendingClub include a soft credit inquiry pull, which means consumers can shop around without a negative impact on their credit score, and the ability to extend the loan to repayment terms of three years and five years.

Recent Changes Are Paying Off

The Radius acquisition has also helped LendingClub diversify its earnings, provide the opportunity to cross-sell services to members, and allowed the company to use deposits to fund loans and reduce costs on loan originations.

If recent earnings are any indication, the move is already paying off in a big way.

In Q3, LendingClub reported record revenue of $246.2 million, up 190% sequentially, and record net income of $27.2 million, up 190% sequentially.

As the company’s loan portfolio continues to grow, LendingClub could also see its recurring stream of net interest income increase, which is a huge plus for investors to consider.

When you consider the prospects of how the economy is recovering from the impacts of the pandemic and how consumer confidence is growing, that could mean strong loan origination volumes for the company going forward.

The bottom line is that LendingClub is more than a online loan platform, it’s a digital marketplace bank on a mission to change consumer finance.

Keep an eye on how the stock holds up following its post-earnings gap, as a period of consolidation and break above $50 a share could be the start of the next leg higher.