Nigel has been in the regulated financial services industry for nearly a decade, has previously owned a financial brokerage and has written many times for sites relating to personal finance and trading.
The stock price of digital-bank LendingClub (NYSE: LC) rallied 30% in Thursday premarket after posting positive Q3 results yesterday. The new-era banking platform is relishing the digital transformation – witnessing noticeable levels of sequential growth.
Looking at LendingClub’s quarterly results, It seems that more and more people are taking to the digital landscape for banking services – supported by the ongoing transformation that's allowing financial services to no longer require physical spaces. Other companies are also making similar moves, with Marqeta now offering digital crypto rewards.
With digital banking on an evident rise, it didn’t take much more than a promising Q3 report for investors to hop on board.
The company recorded record revenue of $246.2 million, outlining a total sequential revenue growth of 20%. Furthermore, LendingClub posted a record net income of $27.2 million, a quarterly increase of 190%.
Not only do these results demonstrate a blossoming digital sector, but they also confirm the legitimacy of the digital banking model; a green light for investors, and a snapshot of an emerging sector that is sustaining impressive levels of growth.
Scott Sanborn, CEO of LendingClub shares his optimism:
“Our success continues to be driven by our competitive advantages, including our growing base of 3.8 million members, our exceptional data science capabilities, and our proven marketplace model. With our enhanced operating leverage, digital-first infrastructure, and the ongoing move of consumers toward online banking, there's no better time to grow a next-generation digital bank like LendingClub.”
LendingClub stock is proving popular with retail traders and institutional investors alike – with data showing LC is currently a popular choice with a selection of hedge funds. LC premarket gains have retraced slightly, showing gains of 24% and trading just under the $40.00 level.
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