LendingClub CEO: Not Seeing Broad Credit Deterioration

The video discusses the impact of the IPO on the company's growth, highlighting its doubled revenue and tripled profitability. It addresses regulatory concerns, emphasizing consumer protection and transparency. The discussion also covers the credit cycle, delinquencies, and the rationale behind raising interest rates. Finally, it explores the diversification of funding sources to mitigate market volatility.

What is the company's primary focus following its IPO?

• Reducing operational costs

• Short-term stock price variations

• Expanding into new international markets

• Establishing a more efficient consumer credit marketplace

What is the main concern of the Consumer Finance Protection Board regarding online marketplace lending?

• Reducing the number of loans

• Limiting the number of investors

• Ensuring consumer understanding of loan terms

• Increasing interest rates

How does the company help consumers with high-interest credit card debt?

• By offering loans with higher interest rates

• By consolidating all debts into one

• By providing loans with no interest

• By refinancing at a lower interest rate

What was the company's rationale for increasing interest rates for the riskiest borrowers?

• To comply with new regulations

• To discourage borrowing

• To cover potential losses in case of economic slowdown

• To increase profit margins

What is the company's approach to handling potential delinquencies?

• Reducing the number of loans

• Preserving investor returns and maintaining predictable credit performance

• Increasing loan amounts

• Ignoring them

What percentage of the company's funding comes from retail investors?

• 25%

• 40%

• 70%

• 55%

How does the company ensure stability in its funding sources?

• By using only internal funds

• By focusing only on large banks

• By diversifying funding sources across retail investors, banks, and institutions

• By relying solely on institutional investors