- Key insight: Happen Bank, formerly LendingClub, switched stock exchanges as it finalizes its rebranding initiative.
- Expert quote: "Rebranding to a bank sets different expectations in terms of performance and growth." —Cornerstone Advisor's Tony DeSanctis
- Forward look: Happen Bank's team will be ringing the Nasdaq opening bell on Tuesday, June 30 in New York City.
LendingClub is now, officially, Happen Bank.
The lender-turned-digital bank finalized its
"As we've embraced 'Bank' as part of the name, we don't want to get too far from our tech roots," CEO Scott Sanborn told American Banker. "Nasdaq is called the tech listing service."
Sanborn noted that coinciding the stock ticker switch with the brand's renaming helps the bank get what he called "powerful advertising and promotion" from Nasdaq as it supports the new listing.
"It helps create a bit more of an event around the change," he continued.
Tony DeSanctis, senior director at bank consulting firm Cornerstone Advisors, told American Banker that the listing switch is not a large material change, but he did agree that the Nasdaq leans toward tech.
"They want to be perceived as a 'tech-forward bank' rather than a 'tech company that does banking,'" he said.
Dylan Lerner, digital banking senior analyst at Javelin Strategy and Research, similarly said that the listing transfer is more of a symbolic move to reposition the company as "more about technology and growth than traditional big firm maturity."
"Being on Nasdaq doesn't magically make that true for Happen Bank, but it does make a connection to other digitally focused financial companies like SoFi and Robinhood," he told American Banker. "Put simply, Nasdaq better supports the narrative they are trying to create."
To mark the official launch, Happen Bank's team will be ringing the Nasdaq opening bell on Tuesday, June 30 at the Nasdaq MarketSite in New York City. Lerner noted that the promotional benefit is a stronger reason for the switch.
"It elevates what would normally be disregarded as a simple name change to a multi-faceted marketing campaign and event," he said.
The renaming is the next step in the company's evolution into a full-fledged digital bank.
"I think rebranding to a bank sets different expectations in terms of performance and growth, which are beneficial," DeSanctis said, but noted that tech companies tend to be valued higher than traditional banks by investors.
Overall, however, DeSanctis approved of the rebranding move.
"I think it is the right strategy to reset expectations from investors as to how they should expect Happen Bank to perform going forward," he said.
The rebrand included more than just a new name — the company also changed its color palette to orange and purple and redid its logo.
"Our old brand was specifically designed to look like a bank because we didn't want to be scary as a non-bank," Sanborn explained. "Now we are a bank, and we want to stand out from the sea of sameness of navy blue, red and white. We're seeing that it's actually driving performance; the same old ads in the new color palette are performing better just because it's breaking through more and getting noticed."
Lerner said that the rebrand was "much needed" for the company, but noted that it is not yet clear how it will influence consumer awareness or perception.
"The LendingClub name feels tied to a past era of peer-to-peer lending hype," he said. "LendingClub's business has also evolved from just lending over the years, especially with the acquisition of Radius Bank. A name change could help establish the broader banking relationship strategy they now strive for."
