BancAlliance, Lender Club Form Strategic Partnership

Did Small Banks Give Away too Much in Marketplace Lender Deals?
– American Banker

American Banker interviewed Manatt's Brian Korn, a partner in the firm's Capital Markets practice, for an article on two recent deals between community bank groups and marketplace lenders.

American Banker reports that BancAlliance and Lending Club announced a co-branded partnership in early February. It allows BancAlliance's approximately 200 members to provide loans at lower rates to customers that they might typically turn away. The co-branded nature of the partnership ensures that customers know who is lowering the rate for them.

Korn told the publication that the disclosure of Lending Club's involvement in these loans could be made in fine print rather than co-branded to comply with transparency requirements.