Cycle-tested Leader with Massive Opportunity
Bank Economics 3X Marketplace
Recurring revenue stream offsets day one credit loss provisions
Marginal earnings per $100M of loans (illustrative example)
Bank Economics
(Loans held for investment)
Earned net
interest income²
$10M
$12M
$3M
$6M
CECL Provision
$5M
Non-deferrable
$2M
acquisition costs¹
Day 1
0-12 Mos
12-24 Mos
24 Mos +
Low-cost funding
Recurring net interest income
Origination fee revenues deferred, CECL provision and acquisition costs taken upfront
1. Origination costs that are expensed as incurred
LendingClub 2. Including net origination fee recognition over the life of the loan as well as an assumed 50bps marginal funding cost
3X
Marketplace
Economics
(Loans sold)
Net Origination
Earnings
$4M
& Servicing Fee
Day 1
☐
Capital-light
Fee-based, tied to originations
Earnings recognized upfront
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