Deal price of $185 MM and a price-to-book ratio of 1.7.LendingClub must seek regulatory approval to modify Radius Bank charter to execute against its stated goals.Profile: Has $1.2 Bn in deposits, $1.4 Bn in assets, $126 MM in bank equity capital, and ROE of 5.4%.FinTech Customers: Brex, Nerd Wallet, and others.Offerings: check deposit, bill pay, card management, and a personal financial management dashboard, as well as open APIs to offer “Banking-as-a-Service” (BaaS) functionality to leading FinTechs.Radius Bank is a Massachusetts chartered digital bank.It’s a smart move enabling LC to bypass the charter process. LendIt Co-Founder, Jason Jones, put it well (paraphrasing): LendingClub wanted to disrupt banking, become a bank, and has now bought a bank. Ally has steadily brought in and enhanced its leadership team at the CFO, Strategy, and other business levels.ĭeep Dive into The Lending Club & Radis Deal.Ally did a deal with Better Mortgage in 2019, making it one of the first forward-looking banks to bet on mortgage.We’d expect more deals and innovation to come.Ally has taken bold steps post spin-out of GM to transform into a full-service services firm.“Evolution to be a full-service financial provider for our customers.”.The deal will take 12 to 15 months to close, but it is an expensive loss for Steel Partners-backed WebBank.Challenger Bank – LendingClub can say they are already delivering the promise of challenger banks today.Owning the Customer – LendingClub can deliver a full suite of services.Originating via Radius Bank charter will reduce fees to WebBank substantially.Faster than applying for a charter and comes with deposits.
Will dramatically enhance the resilience and earnings trajectory of our business.A digitally native marketplace bank at scale with the power to deliver an integrated customer experience, enabling consumers to both pay less when borrowing and earn more when saving.
MS has been descended from the HNW to retail before the acquisition of Discover Financial (since sold) or discount brokerage Dean Witter are good examples.GS Marcus, by contrast, is now an outlier on M&A, BAC, JPM, and all other banks have done transformative deals post criss (see WSJ for more).MS has carved out a starkly different approach (see $1 Bn acquisition of Solaris).A gutsy and transformative deal, the largest such deal since the 2008 crisis, representing 15% of MS’s market cap.ROE – the giveaway here is “balance sheet light”.Higher NIM/cheap deposits – $56 Bn(!!) in deposits.Future-Proofing – Diversifies from high-touch full-service HNW advisory, to a bet on the continued rise of digitally savvy self-service consumers.Growth – The storied white-shoe firm, is moving downmarket to acquire digitally-oriented retail customers.Combination increases Wealth Management scale, fills product and service gaps through complementary offerings, and enhances digital capabilities positions Morgan Stanley as a top player across all three channels: Financial Advisory, Workplace, and Self-Directed.Combined platforms will have $3.1 Tn client assets, 8.2MM retail client relationships and accounts, and 4.6 MM stock plan participants.Accelerates Morgan Stanley’s transition to a more balance sheet light business mix and more durable sources of revenue.Drop us a note – we’d love to catch up and introduce you to our recent sales hire, Elena Korneeva. PeerIQ will be attending SFIG Vegas this Sunday through Wednesday. The transaction is subject to regulatory approval and closing conditions, and is expected to close in the third quarter of 2020.What a week! Three major M&A deals that are re-shaping the consumer finance and FinTech sector. Associates Nathan Baum, Blake Schell, RuiHui Yu, and Jonathan Rhein also provided valuable assistance. IP partner Mehdi Ansari is advising on intellectual property issues, and partner Eric Wang is advising on tax matters. Partner Marc Trevino and special counsel Rebecca Coccaro are advising on executive compensation matters. The S&C team advising Ally in this matter is led by financial services partners Mitch Eitel and Andrew Gerlach. Upon completion of the transaction, Ally will provide over 11 million customers in all 50 states with secured and unsecured banking products. The acquisition will further diversify Ally's product offerings, adding an established credit card platform as well as a full-spectrum servicing and recovery operation and a nationwide merchant acquiring business. S&C is advising Ally Financial, a leading digital financial services company, in its $2.65 billion acquisition of CardWorks, a non-prime credit card and consumer finance lender. S&C Advises Ally Financial in $2.65B Acquisition of CardWorks
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