Google Inc (GOOGL) Investing $125 Million For Online Banking System?


In an article on CNBC, it was reported that online credit marketplace LendingClub is gearing up for its IPO. The money lending platform gave around $3 billion in loans in the first three quarters of this year. The source quoted the founder and Chief Executive Officer of LendingClub Renaud Laplanche, who thinks that the idea behind this service is not just to launch a service that will lend money to people. The company is trying to create a complete new platform. There are many similarities in Google Inc (NASDAQ:GOOGL) and LendingClub. Both the companies are targeting to set a trend in the tech market. Google Inc (NASDAQ:GOOGL) thrived to become the search engine giant and it is now the search juggernaut without any competitor. Similarly, LendingClub is emphasizing heavily on the “platform” idea. This is because of the fact that there are a plethora of lending services in the US. A new lending service will now imbibe the customer base.

Google Inc (NASDAQ:GOOGL)’s former CEO, Eric Schmidt, in his book, talks about the most successful companies of the future. He thinks that the companies must strive to craft a platform which can set the trends. It seems Lending Club is following Schmidt’s advice. Google Inc (NASDAQ:GOOGL) is also a stakeholder in Lending Club. The search engine giant invested $125 million in the company back in 2013.

Lending Club CEO said that having Google Inc (NASDAQ:GOOGL) on board is a big positive factor in attracting users. Google Inc (NASDAQ:GOOGL) can further enhance money lending and borrowing services in the future. Lending Club is eyeing for just $14 per share initially. It is valued around $6.5 billion.

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