LendingClub launches checking account with cash back rewards

Published 18/06/2025, 13:06
LendingClub launches checking account with cash back rewards

SAN FRANCISCO - LendingClub Bank, a subsidiary of LendingClub Corporation (NYSE:LC), a $1.2 billion revenue financial technology company currently trading below its InvestingPro Fair Value, introduced LevelUp Checking, a new digital checking account that offers cash back rewards for debit card purchases and personal loan payments.

The account provides 1% cash back on debit card purchases for gas, groceries, and pharmacy items when customers enroll in direct deposit. Customers who also have a LendingClub personal loan can earn 2% cash back on their monthly loan payments when made on time from their LevelUp Checking account. This new product launch comes as LendingClub maintains strong liquidity with a current ratio of 3.97, according to InvestingPro data.

Additional features include 1.00% APY on balances of $2,500 or more, no account fees, no minimum balance requirements, unlimited ATM rebates, early paycheck access with direct deposit, and free transfers.

"LevelUp Checking delivers cash back for essential purchases like gas and groceries while stacking on additional cash back for our borrowers who make on-time payments," said Mark Elliot, LendingClub’s Chief Customer Officer, according to the press release.

A recent LendingClub survey found that 31% of consumers prioritize rewards or cash back when choosing a credit card, while 42% report food and groceries as their largest category of increased credit card spending.

The new checking account is currently available only to existing LendingClub members who can qualify by having a personal loan, LevelUp Savings account, or Certificate of Deposit with the bank.

LendingClub Bank describes itself as a digital marketplace bank that has served more than 5 million members since 2007. With revenue growth of 8.77% over the last twelve months and a strong financial health score from InvestingPro, the company continues to expand its digital banking services. InvestingPro subscribers can access 12 additional key insights and a comprehensive analysis of LendingClub’s financial performance through the Pro Research Report.

In other recent news, LendingClub reported its financial results for the first quarter of 2025, revealing a mixed performance. The company achieved a total net revenue of $218 million, surpassing revenue forecasts of $213.46 million, marking a 20% year-over-year increase. However, its earnings per share (EPS) came in at $0.10, slightly below the expected $0.11. Despite the EPS miss, LendingClub’s loan originations grew by 21% year-over-year to $2 billion, reflecting continued demand from borrowers. Analyst Vincent Caintic from BTIG adjusted the price target for LendingClub shares from $20.00 to $14.00, while maintaining a Buy rating, citing increased marketing expenditures as a factor in the adjustment. Caintic also noted that LendingClub is considered one of the top growth stories within his coverage area, with projections for originations showing significant growth in the coming years. The company’s strategic focus includes expanding marketing channels and optimizing deposit funding costs, and it has set ambitious targets for the second quarter of 2025. LendingClub’s management expressed confidence in their strategic positioning, emphasizing new market opportunities and ongoing efforts to leverage market trends.

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