LendingClub Acquires Radius Bank for $185M, First Fintech to Buy US Bank

LendingClub, a prominent peer-to-peer lending fintech, announced the acquisition of Radius Bank for approximately $185 million in February 2020, marking a historic first as no fintech had previously acquired a US-regulated bank. The deal was structured to close within 12-15 months, subject to regulatory approvals. LendingClub expected the combined entity to reach break-even approximately two years after the transaction's completion.

By acquiring a bank charter, LendingClub aimed to reduce its dependence on third-party bank partnerships for originating loans, lower funding costs, and offer a broader range of financial products directly to consumers. Radius Bank, a digital-first community bank based in Boston, brought deposit-gathering capabilities and a regulated banking infrastructure. The acquisition represented a paradigm shift in the fintech-bank relationship, demonstrating that fintechs could move from partnering with banks to owning them outright.

The deal set a precedent that would influence how regulators, investors, and the broader industry viewed the convergence of fintech and traditional banking.