According to a BankServ press release, Lending Club has implemented BankServ's payment platform, ACH reporting, and cash management solutions. This is the same platform that Zopa uses and is based on Magex Managed Payment Platform designed for person to person payments which BankServ acquired in 2006. Although this news is unimportant to most lenders, it will become significant if BankServ or any other payment system can manage lender's funds to pay interest on idle money. From the press release:
BankServ powers innovative Lending Club person-to-person lending and borrowing platform
SAN FRANCISCO, 7 August, 2007 — BankServ, worldwide experts in electronic payments, today announced its part in the successful launch of Lending Club's collaborative person-to-person (P2P) lending platform. Lending Club has implemented BankServ's Magex Payment Platform, ACH reporting and cash management solutions.
P2P banking and payments is set to be a major growth industry. The BankServ solutions have been deployed to support Lending Club's innovative, online facility that brings a new financial service to various online communities (including university alumni groups, social networks, and professional organizations). The Lending Club solution offers users the ability to get a loan, fully online, at a lower rate than from traditional sources. Lending Club manages user authentication, credit checks and loan processing, and, through its LendingMatch™ technology, matches up groups of compatible lenders and borrowers.
"We set out to find a company that could support our P2P service and provide us with ACH reporting and cash management facilities that would seamlessly integrate with the other components of Lending Club's technology, namely credit analytics, portfolio recommendation, profile matching, authentication and collections. We recognized that BankServ's Magex Payment Platform has become the standard for any company that is serious about launching a P2P financial service," comments John Donovan, COO, Lending Club.
"Many payment industry experts are convinced that P2P lending will define a new era in electronic payments. There is a clear need for new solutions that improve service and convenience to consumers, and Lending Club has achieved this with its innovative LendingMatch™ technology," said Mary Ellen Putnam, Vice President of International Business, BankServ. "We are pleased that the BankServ technology offerings have been selected by Lending Club and look forward to working with this impressive team as they build on their success."
"We were looking for a partner that brings experience in P2P, the payments industry, and that also understands the need for speed and efficiency. BankServ has proven technology and services that made them an obvious choice for Lending Club," concludes Donovan.