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Happen Doubles Loan Issuance Through App as Deposits Grow 22%

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Happen Doubles Loan Issuance Through App as Deposits Grow 22%

Happen said loan issuance through the mobile app doubled year over year.

AI service agent Penny resolves 30% more calls than the previous system.

Borrowers who came to Happen to pay off credit cards are giving the bank additional sources of business through their savings.

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Happen, formerly known as LendingClub, reported that deposits grew 22% from a year earlier to $11.5 billion in the third quarter, according to earnings results released on Wednesday (Oct. 28). The number of active borrowers with a deposit account tripled.

“When you see that we’re delivering a market-leading rate on savings, we believe that reinforces the value we provide on lending as well,” CEO Scott Sanborn said during the call’s investor question session.

LevelUp checking helps connect the two businesses by offering 2% cash back on on-time loan payments made through the account. Sanborn said one in five accounts is being opened by borrowers who subsequently accumulate $18,000 to $20,000 in savings, about as much as the credit card debt they originally consolidated.

The mobile app is becoming central to those relationships. Most customer interactions now take place through it, and loan issuance through the app doubled year over year. Borrowers who have repaid their loans and use either a deposit account or Debt IQ, the bank’s debt monitoring and management tool, are two to three times more likely to return than customers who only had a loan, according to commentary on the Wednesday call.


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