More Bank/Fintech Fireworks

Fresh off the heels of last week’s stunning news that Varo Money had been granted a national charter to become a full-fledged bank, we had another bombshell this week: Lending Club acquired Boston-based Radius Bank for $185 million. 

While Varo spent several years going through the regulatory process to gain a national bank charter, Lending Club cut out the middle man, so to speak, by just going out and buying a bank itself. 

This deal will, of course, have to be approved by the appropriate federal regulators, but nonetheless represents an interesting look at what some other tech firms with designs on becoming a bank may try to do in the future.

Radius also isn’t just any old bank; it was well-known as a digital innovator that partnered with many fintechs, including Brex, Kabbage, and NerdWallet. It will be fascinating to see just what this new Lending Club bank will look like once the deal is finally approved.