The deal will see the US non-bank lending giant adopt Brismo's standardised metrics.
The largest US marketplace lending platform LendingClub and London-based data vendor Brismo have announced a new partnership to improve transparency for investors in loan assets.
Brismo has created standardised performance metrics, using granular loan level data, allowing investors to compare LendingClub and other platforms in the non-bank lending sector’s track record.
Valerie Kay, Chief Capital Officer of LendingClub, says the firm’s partnership with Brismo will help improve transparency.
“Providing third party-verified performance measurement, that is applied consistently throughout the industry, delivers improved insight and transparency for those seeking to learn more about consumer credit – the asset class that LendingClub has helped deliver to the masses,” Kay said.
Brismo says its standardised metrics enable investors to view loan performance in the non-bank lending sector is such a way as to allow them to compare risk and return characteristics across multiple geographies and asset types.
This, it adds, leads to an improvement in decision-making and greater efficiency to due diligence, risk management, risk monitoring, performance benchmarking and portfolio valuation.
Rupert Taylor, founder and CEO of Brismo, added: “Facilitators can improve diversification of funding if they can communicate performance in a format that is easy to understand to the widest possible audience. We look forward to working with LendingClub to help them deliver best in class disclosure of their asset performance.”