EXCLUSIVE: The Rebrand That Puts LendingClub In SoFi's Lane — CEO Scott Sanborn Explains Why The Happen Bank Rebrand Is Built For Mass-Market

• In an exclusive interview, CEO Scott Sanborn said that the rebrand to Happen Bank reflects a shift toward becoming a multi-product consumer banking platform.
• Sanborn added that the expanded offerings now allow the company to “go up the funnel” in advertising and reach a wider audience.
• He stated that future marketing decisions will remain data-driven, relying on testing rather than large, one-off bets.

LendingClub (LC) CEO Scott Sanborn told Stocktwits that the company’s rebrand to Happen Bank moves to expand beyond its origins as a personal lending marketplace and compete more directly with SoFi Technologies (SOFI) for mainstream consumer banking customers.

“When we were LendingClub, and the only product we had was personal loans, television — buying a stadium for $25 million a year — doesn’t make any sense,” he said in an exclusive interview with Stocktwits’ Michele Steele. “There are too few people in that audience who need our product at the time we’re in front of them.”

SoFi, on the other hand, secured the naming rights deal for SoFi Stadium in September 2019 for 20 years, with annual payments exceeding $30 million. At the time, it was one of the highest naming rights fees in sports history. 

The company announced its rebrand alongside its first quarter (Q1) earnings. The company reported Q1 adjusted earnings per share of $0.44, beating the expected $0.36 per share, according to Koyfin data. Revenue came in at $252 million, higher than Wall Street’s estimate of $249 million.

Why The Economics Finally Work

According to Sanborn, mass-market advertising only pays when the product stack is broad enough that any viewer has a meaningful probability of needing something you offer. A single-product lender fails that test every time. With Happen Bank offering checking, savings, personal loans, auto refinancing, home improvement financing, and home equity loans, new avenues open up. 

Happen Bank launched its home improvement loan weeks ago through a WiseTech partnership. Sanborn said home equity is in testing with strong early results. 

“The rebrand, the broader product mix, will open up the ability to go up the funnel in advertising. We will do that the same way we do everything, which is informed by data and lots of testing.” 

– Scott Sanborn, Chief Executive, LendingClub

The product footprint has finally crossed the threshold where the SoFi playbook makes financial sense.

SoFi Vs LendingClub

SoFi’s growth has been driven in part by aggressive brand-building and a broad financial ecosystem targeting high-credit consumers. The company has expanded membership rapidly in recent years, supported by cross-selling multiple financial products.

LendingClub, by contrast, has historically relied more on marketplace lending and a hybrid banking model. While both companies offer unsecured personal loans with similar terms, their strategies have diverged in customer acquisition and brand positioning.

LC’s stock gained as much as 2.3% in premarket trade on Wednesday. Retail sentiment on Stocktwits around the company trended in ‘extremely bullish’ territory over the past day, accompanied by ‘extremely high’ levels of chatter. 

SOFI’s stock also moved more than 2% higher in pre-market trade and was among the top trending tickers on Stocktwits ahead of the Q1 earnings call before market open. Retail sentiment around the company flipped to ‘bullish’ from ‘bearish’ over the past day, and chatter rose to ‘high’ from ‘normal’ levels. 

Some users on the platform pointed to SoFi’s faster membership growth, suggesting LendingClub may need to scale marketing more aggressively to compete. Others focused on execution, arguing that the company’s expanded product suite now needs stronger promotion to drive adoption.

LC’s stock has fallen more than 11% so far this year, while SOFI’s stock is down more than 30%. 

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