Today In Digital First Banking: LendingClub Gets OK To Buy Radius; European Banks Lend Less Amid Pandemic
In today’s top news in digital-first banking, LendingClub said it has attained all of the regulatory approvals to close its $185 million acquisition of Radius Bancorp, while Euro area banks have reportedly scaled back lending to safeguard against risk. Plus, Plaid plans to focus on growth in Europe.
LendingClub said it has received all of the regulatory green lights to close its $185 million purchase of Radius Bancorp. Anuj Nayar, vice president and U.S. financial health officer at LendingClub, told PYMNTS in a previous interview that the combination of LendingClub and Radius will make the country’s first publicly traded neobank.
A new European Central Bank (ECB) poll indicates that Euro area banks have reduced lending to protect against risk. The ongoing renitence on the part of banks shows the lack of certainty still in the economy because of the coronavirus, with the inclusion of different government restrictions and large rises in case counts.
Plaid, the financial technology upstart, is looking at increasing its size in Europe by two times. The focus for the California-based firm is now on widening its international reach after an acquisition by Visa fell through. Plaid is reportedly looking to have about 80 staffers in the London and Amsterdam offices by the close of 2021.
Janet Yellen, who has been nominated by President-elect Joe Biden to lead Treasury, believes that the government should “act big” for its next coronavirus aid package. “Neither the president-elect, nor I, propose this relief package without an appreciation for the country’s debt burden. But right now, with interest rates at historic lows, the smartest thing we can do is act big,” Yellen said, as per a published report.